NEW YORK, October 28 /PRNewswire/ --
- Analytics based on research by Dr. Andrew W. Lo, Chief Scientific Officer of AlphaSimplex Group and Harris Harris Group Professor at MIT Sloan School of Management
Investor Analytics LLC, a global leader in risk analysis and risk management solutions to the hedge fund industry, announced today its plans to offer advanced analytics for the hedge fund industry based on research by Dr. Andrew Lo, Chief Scientific Officer of AlphaSimplex Group, LLC, an asset management firm specializing in alternative investments. The product - known as the AlphaSimplex Analytics Array or A3 - will be available Q1 2009 on the Investor Analytic's platform alongside its existing suite of risk tools for the hedge fund industry. A3 comes precisely at a time when many investment firms are focusing on better ways to analyze the risks in their alternatives portfolios and strategies.
Included in the A3 product suite are new measures of illiquidity exposure, econometric risk-budgeting tools, and return-based and position-based portfolio analytics for separating alpha and multiple betas, as well as enhanced loss statistics and performance metrics. The theoretical underpinnings of the A3 framework is the Adaptive Markets Hypothesis, an evolutionary theory of market dynamics proposed by Dr. Lo to reconcile the Efficient Markets Hypothesis with the many anomalies uncovered by studies in behavioral finance.
Damian Handzy, Chairman and CEO of Investor Analytics, said, Investor Analytics is very excited to be working with AlphaSimplex and Dr. Lo in bringing this unique suite of tools to the market. A3 addresses precisely those market-risk issues that have figured so prominently in the current crisis-namely, illiquidity, unprecedented volatility, and fat tails.
Dr. Andrew W. Lo, Chief Scientist of AlphaSimplex and the Harris Harris Group Professor at the MIT Sloan School of Management said, AlphaSimplex is delighted to be working with Investor Analytics to bring these important innovations to the market, especially in these times of severe market stress. We expect every hedge fund investor will want the unparalleled degree of risk transparency that A3 can provide.
Recently, Investor Analytics announced its newly upgraded and modular risk reporting platform which was specifically designed for incorporation of new and better risk analyses such as those of AlphaSimplex.
Historic and unprecedented market risk continues to dominate the financial sector and hedge funds in particular. Increasingly the trend among hedge funds, funds of hedge funds, as well as traditional asset managers has been to partner with third-party risk management specialists who provide independent assessments of their risk profiles so that portfolio managers can better safeguard their investors' capital. By generating multiple dynamic perspectives on a fund's risk exposures - including liquidity risk, regime shifts, and time-varying correlations - A3 will give managers and investors greater confidence that their risks are being measured and managed effectively.
Mr. Damian Handzy will be attending Risk USA's conference in New York this week.
Notes to Editors:
Investor Analytics LLC, headquartered in Berkeley Heights, New Jersey with offices in Midtown Manhattan and Central Ohio, has been providing portfolio and risk management services to the hedge fund industry since 1999. Investor Analytics employs proprietary methodologies to analyze complex investment portfolios of hedge funds and fund of hedge funds and provides clients with a suite of risk and transparency analyses. Damian Handzy is Chairman and CEO.
AlphaSimplex Group (ASG) is an asset management company that offers a suite of alpha-generation and beta-capture strategies, including hedge funds, hedge-fund beta replication, and global tactical asset allocation. It was founded in 1999 by Dr. Andrew W. Lo, the Harris Harris Group Professor at the MIT Sloan School of Management and an internationally recognized pioneer in the fields of quantitative and behavioral finance, risk management, alternative investments, and hedge-fund beta replication. Dr. Lo has published numerous articles in finance and economic journals, and is author of The Econometrics of Financial Markets, A Non Random Walk Down Wall Street, and, most recently, Hedge Funds: An Analytic Perspective.
Web site: http://www.investoranalytics.com
Caroline A. Chartier, Ermis Financial Communications, USA Tel: +1-212-810-9218, Europe Tel: +336-43-96-98-01, cac@ermisfinancial.com
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