A Hedge Fund Manager's View on Contributions to Performance

Wednesday, June 24, 2015
Source: Liquid Holdings Group, Inc.

As an extension to our recently published white paper on increasing performance through modern data management, we've highlighted a few performance reports in LiquidMobile that our clients rely on daily to monitor their investments.

Performance Attribution

This report provides a snapshot of the contributors to portfolio performance as of right now or as of an historical date. It summarizes the top gainers and losers, allowing a PM to determine which asset allocation and security selection decisions are exhibiting the strongest overall impact on a portfolio's value.

Performance Attribution by Sector

This report analyzes how a portfolio is allocated among different sectors, cash and unclassified, and drills into the top contributors to performance within each sector. From this view, a portfolio manager can compare how 'sector allocation decisions' contribute to a fund's overall returns and NAV, and determine which sectors to increase or decrease holdings in to improve the market value of the portfolio.

As important as the resulting analysis is the infrastructure in place to ensure the integrity of and anytime access to the portfolio data. The infrastructure at any hedge fund helps guide investment decisions, client discussions and compliance mandates-- doing so requires arming the business with a single version of real-time positional data for analysis and reporting purposes. Equally crucial, the infrastructure should be supported by a complete range of middle-office services that automate start- and end-of-day processes, and provide continuity / disaster recovery that ensure the business remains operational at all times.

This is the premise behind the Liquid platform-- for a free trial contact us today at marketing@liquidholdings.com.

Continuing the Discussion

Here's a snapshot of content published during the last ninety days on the hedge fund industry:

Synchronizing the Front-Office through Modern Data Management: a white paper that discusses how synchronizing real-time portfolio data with cohesive workflows across the front-office can help improve performance;

Modern Front-Office Data Management A Necessity as Regulations Continue: a blog that explores the impact the proposed SEC regulations will have on hedge funds;

From the Markets Media Desk: Liquid Updates Mobile Platform: Markets Media coverage on our latest real-time portfolio and risk analytics reports available in LiquidMobile; and

Legacy vs Modern Approaches to Servicing Hedge Funds: a blog examining how modern technology provides hedge funds and other asset managers with significant value above and beyond front-office capabilities.

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