Managing Risk in a Market Neutral Portfolio using MSCI Barra

Managing a market neutral fund is much more than pairing longs and shorts, it is also about understanding (and adjusting if needed) how much of your risk/return is based on asset selection versus other market factors, such as momentum, quality, growth and other factors.Solving these challenges today takes dedicated personnel and in many cases, it is still very difficult to integrate into the investment process or is not timely enough.

With EDS, usability and the value of their factor data from MSCI skyrocketed, based on:

  • ​A simple and intuitive application that any member of the investment can use.

  • Uniquely configured to their firm, including master & sub- funds and each team and individual member. 

  • Once click analysis, including simulating portfolio changes and optimizing for exposure changes.

  • The Head Trader can identify multiple risk, factor, return and exposure changes across any time-series in a few clicks, helping the investment team gain valuable and actionable insights in real-time.

  • Ability to isolate both asset selection and outside risks and returns, down to analyst and stock level.

  • Before the trade, they can now incorporate factors into idea generation and portfolio construction.

  • Performance attribution across the team has been improved.

"MSCI Factor content, now available through the EDS Analytics Platform, can transform time-consuming tasks into readily available insights."

John Regino, MSCI Executive Director

Working with Leading Firms

"EDS is revolutionizing proactive, thoughtful investment managers looking to leverage technology as a scalable tailwind in their proprietary process, leveling the playing field relative to large incumbent vendors."

Jon Neitzell - Anduril Partners

EDS Provides

Improved Performance

 

  • EDS helps you measure and improve your investment process - making it easy to analyze where your team succeeds and where the blind spots are​​

  • Keeps all Intellectual Property (IP) in-house

  • Creates accountability & transparency within the investment team

Lower Costs

  • Consolidates into one vendor and system for reduced overhead.

  • No need to hire additional personnel

Efficiency & Automation

 

  • Aggregates all data (including codifying internal intelligence) into one platform, making evaluating the data and ideas much easier and faster.  

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