Butterfield Fulcrum, a Bermuda-based independent alternative fund administration company, has partnered with Risk Fundamentals, a financial software firm, to offer a new service designed to both provide risk analytics to fund managers and align fund managers and investors’ risk reporting requirements.
Reportedly, the service provides transparency reporting to investors without revealing investment level data and in addition to traditional VaR (value at risk) assessments, measures liquidity and leverage, the primary sources of hedge fund collapse.
According to the company, the incorporation of this service into the Butterfield Fulcrum technology infrastructure allows the provision of risk reporting to fund managers and investors. Reports are produced from independently reconciled data, across multiple prime brokers if necessary.
Akshaya Bhargava, CEO of Butterfield Fulcrum, said: “This product delivers an innovative service that finally bridges the transparency divide and accommodates the requirements of investors and fund managers alike.”
Ben Weston, chairman of Risk Fundamentals, said: “Risk Fundamentals is a risk management and transparency solution for hedge funds, funds of funds and institutional investors. This collaboration fulfills a longstanding need in the marketplace for new and effective ways to understand and manage risk.”
