Mitigate FOHF Portfolio Risk With Wisdom

The global liquidity crisis, impending regulatory legislation, fraud scenarios, new tax considerations, and new compliance benchmarks all have caused fund of funds to re-evaluate their business practices. Today, fund of funds expect to generate alpha through better risk management and more rigorous due diligence. This is the paradigm of mitigating risk with wisdom.

Portfolio Wisdom is the product within Cogency’s Fund of Hedge Fund suite that gathers and organizes your portfolio information, and guides you in this process of risk mitigation and due diligence.

Click here to learn how Cogency can help you Mitigate Risk with Wisdom

  • Counterparty risk
    • Manager due diligence workflow and procedures
    • Track all correspondence, documents and activities
  • Market risk
    • Monitor market risk and exposure with investment portfolio transparency
    • Capture current prices along with pricing history with a valuation infrastructure tailored to fund of funds
  • Credit risk
    • Monitor cash holdings
    • Track currency transactions, monitor exposure and hedging
    • Understand the state of illiquidity and the cost of liquidity with full analysis of the terms and dates of portfolio and investor redemption possibilities
    • Monitor leverage with a clear view of the relationship between portfolio and equity
  • Operational Risk
    • Use a proven system implemented by leading fund of funds and fund of funds administrators
    • Use systematic and documented processes that eliminate key-person risk
  • Regulatory Risk
    • Report on all performance outcomes and objectives
    • Account for and report on your risk mitigation processes
    • Track and monitor your operations with real-time views, reports and alerts

The Wisdom Center Dashboard serves as a launching point into the full depth of portfolio information that includes Performance and Exposure information about your Firm, Funds, Portfolios, and Managers, as well as insight into Liquidity, Capital, Investor Composition and Cash and Currency Positions.

  • Throughout the suite of dashboards, users can navigate through many different dimensions:
    • Time – View a single month, or choose to see drift or aggregation over time, in tables or graphs.
    • Facts – Choose the data-elements in each view, from lists that include net, gross, exposure, attribution, dollar returns, rate of return, and more
    • Exposure hierarchies – Store exposure information for five user-defined dimensions, usually used for sector, region, strategy, market cap and asset class. Roll up countries to regions, industry to industry group, and other user-defined hierarchy levels.
    • Organization – See returns by strategy across all funds, manager across all strategies, funds across all managers, managers across all share classes, or any other relevant system hierarchy.
  • Access the dashboards with Cogency’s Desktop Wisdom for a rich graphical interface, or Cogency’s Web Wisdom for a browser based user interface
  • Combined with information from other Cogency modules, such as capital allocation and fee calculations, investor balances, fund prospects and much more, users can see the overall firm-wide view of the business across every department within a single integrated environment

Cogency is uniquely qualified to provide this type of insight into your portfolio, given its extensive experience with fund of hedge fund accounting, reporting and analysis. Find out now how Cogency can help your business in these critical times.