Hedge funds make better decisions with Axioma's unified risk management solutions
Axioma’s next-generation solutions outperform anything else on the market.
- Best-of-breed factor models for risk exposures and P&L attribution
- A suite of stress-test tools to shock your portfolio with your scenarios
- Optimization tools for hedges and portfolio construction
- Integrated market data and sophisticated pricing models
- Dynamic dashboards and custom reporting
- Pre-trade and what-if scenarios, with real-time impact on the portfolio
Axioma’s unique risk-management solution handles multiple asset classes for diverse strategies, while serving the needs of users across the enterprise. At last, portfolio managers, analysts, and risk managers can speak the same language when it comes to risk.
Innovative, Flexible, Powerful Risk Management.
With virtually limitless objectives and an equally unlimited range of constraints, Axioma Portfolio Optimizer delivers maximum flexibility to model even the most complex hedge fund strategies for a wide range of investment management approaches, from quantitative to fundamental.
A "unified" multi-asset class risk management platform for middle-to-front office users, providing hedge fund portfolio managers and risk officers with risk reporting, risk analysis and decision support for multi-asset class portfolios.
Hedge fund managers have long experienced factor alignment problems (FAPs) resulting from misalignment of the expected returns model, the risk model and the constraints used to formulate a portfolio construction problem. The impact on portfolio performance is invariably negative. This article discusses the effects of FAPs on optimized portfolios and demonstrates how the Alpha Alignment Facto (AAF) and custom risk models not only offer a practical solution to alignment problems, but also give the portfolio manager access to portfolios that lie above the traditional risk-return frontier defined by the user risk model.
In this paper, Axioma researchers explore the history of the current Greek crisis, review approaches taken by market practitioners to stress testing, outline potential scenarios that hedge fund portfolio managers may wish to examine and show how Axioma's risk management and portfolio analytics tools can be applied to stress test a model portfolio of European bonds and equities.
The traditional Markowitz MVO approach is based on a single-period model which fails to utilize any data or decisions beyond the rebalancing time horizon. For hedge fund managers with longer-term horizons, multi-period optimization offers the opportunity to make wait-and-see policy decisions by including approximate forecasts and long-term policy decisions beyond the rebalancing time horizon.
For hedge fund managers, Axioma Portfolio Analytics provides time-series risk analysis, stress testing, and both traditional Brinson and factor-based performance attribution, fully integrated with Axioma's fundamental, statistical and macroeconomic risk models as well as custom risk models built with the Axioma Risk Model Machine (RMM).
Skandinaviska Enskilda Banken AB (SEB), one of the largest asset managers in northern Europe with more than €180 billion AUM, implements Axioma Risk to create “one of the most sophisticated risk systems in the world”.