Top performing La Fayette Investment Management is to use Riskdataâs FOFiX product as part of its risk management approach for its $2.7 billion multi-strategy and multi-manager funds of hedge funds.
Jan Pensaert, Chief Executive Officer of La Fayette commented: "Our reputation has been built by relentlessly focusing on maintaining an optimized performance/risk combination of managers. We believe this is driven not only by selecting the best talented hedge fund managers available, but just as much by disciplined portfolio and risk management. Our key risk focus is to carefully select managers upfront, then closely monitor the behaviour of a clearly identified set of qualitative and quantitative parameters. We want to flag maturing hedge funds and strategies early, and remove them through a dynamic portfolio asset allocation process. Having looked around, we recognised that Riskdata had developed a leading quantitative technique that could provide a complementary monitoring platform, reinforcing our qualitative due diligence and risk management process."
FOFiX is the first service offering a daily updated view on all market classes - equities, fixed-income, listed and OTC derivatives - giving fund of fund managers easy, interactive and intuitive access to any risk analysis.
Olivier le Marois, CEO of Riskdata, said: "Riskdata FOFiX continues to attract demand from leading fund of hedge fund managers. With it, managers are able to run the best available quantitative techniques alongside their own qualitative due diligence and monitoring process, in order to track risk exposures of individual hedge funds and managers. FOFiX can provide a complementary and completely independent view of the managersâ risk exposures, challenging manager assertions and the clientâs own qualitative analysis, thus reinforcing the robustness of selection and monitoring process. Weâre delighted that a firm such as La Fayette, which is well known for the sophistication of its research-driven management approach, believes that FOFiXâs monitoring capabilities are a helpful addition to its risk management armoury".