Challenge
As a newly launched asset management firm back in 2015, ITERAM started with proprietary analytical and operational tools and complemented them by partnering with an external provider. The challenges were:
Building models and reports in Excel is time-consuming and inconvenient. By contrast, Venn by Two Sigma offers a user-friendly interface compared to other risk portfolio management tools and can help tackle all of the challenges above. ITERAM appreciated the flexibility and ability to customize a variety of tasks to accelerate internal decision-making processes.
Solution:
ITERAM has partnered with Venn to help with several key workflows:
Risk Management
Venn aims to help produce a variety of risk metrics for both single line investments and on the whole portfolio level. The key metrics include risk attribution, correlation and factor attribution analysis. We also use Venn's stress testing capability to help navigate different challenging market scenarios.
Portfolio Construction
Venn has been instrumental in building and optimizing our portfolios. We typically integrate our CAPM assumptions to get forecasted returns and use optimization results as a due diligence tool for our strategic allocation changes.
Ongoing Sourcing and Research
Venn comes with an extensive database of funds and managers. The advanced filter can help us quickly build up peer groups according to different criteria, and generate analyses and tailor-made reports very effectively.
Results and What’s Next
As an asset manager specializing in investment solutions, it’s important to seek a solution that also integrates data for private markets activity. While established data vendors exist for private funds, ITERAM will find value to have all the data within one single database.
Venn is pleased to share this as a currently planned initiative and looks forward to further partnering with ITERAM.
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The information contained in this article is provided for general informational and educational purposes only, and should not be construed as investment advice. The contributor to this material is associated with a client of Two Sigma Investor Solutions, LP (“TSIS”). Neither TSIS nor its affiliates have compensated the contributor for his statements. The statements from the interview have been edited and reformatted by TSIS with the contributor’s approval. Unless otherwise noted, the contributor’s statements do not represent the actual views or opinions of TSIS or its affiliates, or any officers, directors, or employees thereof.
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