Hedge Funds Get Real-Time Portfolio Tools10.07.2011
Investors demand analytics on trading performance.
Hedge funds are deploying technology to provide real-time trading and portfolio measurements in response to investor demands.
Merlin Securities, a prime brokerage services and technology provider to the alternative investment industry, has released the next generation of Merlin Compass.
Merlin Compass 2.0 is a real-time portfolio analytics application that incorporates the latest trading and risk tools and provides hedge fund managers with intraday performance, exposure and risk analytics across multiple custodians, prime brokers and accounts asset classes.
“Investors are requiring more detailed information from hedge funds,” Ron Suber, senior partner at Merlin Securities, told Markets Media. “Merlin provides all of this in real-time for multi primed hedge funds and their separately managed accounts.”
Requests for analytics now include risk adjusted returns, delta and beta stats, liquidity, exposure over time, correlation, turnover, attribution (relative and absolute), scenario analysis and much more, he said.
Merlin Compass 2.0 incorporates major improvements including the integration of trading, positions and risk information, increased customization, robust filtering, and multiple workspaces.
Other enhancements include the introduction of dynamic watch lists and benchmark tracking. In addition, more than 100 new data elements give users the ability to break out key metrics by long, short, gross and net values, in multiple currencies across most asset classes.
“Merlin Compass 2.0 enables fund managers to make more timely and educated trading decisions,” said Suber. “It speeds up the feedback portfolio managers receive regarding performance, trading, and risk so that they can react in real time. “
As with prior versions, Merlin Compass 2.0 integrates seamlessly with the Merlin PRIME and MerlinSHARP portfolio management and trading platforms to provide real-time portfolio updates and to integrate with fund managers’ unique workflow and practices.
“Merlin serves hedge funds that require multi-prime solutions,” said Suber. “Our global multi-currency platform supports trading in equities, options, futures and fixed income.”
The Pyth network is designed to bring real-world data on-chain on a sub-second timescale.
Jefferies and three fund managers will provide CLO equity capital and warehouse funding for new issues.
Pyth is built on a blockchain to handle receipt and distribution of fast-moving data.
CEO said significant loss relating to the failure of a US-based hedge fund is unacceptable.
The fund will leverage the platform to aide its AI-based strategies for the currency markets.