Frazer McKenzie

13/01/2012 Author: Frazer McKenzie

Comment: Fraser McKenzie

Powerful fund analytics, dynamic scenario analysis and ease of use supports efficient investment decision-making at 47 Degrees North.

Based in Zurich, 47 Degrees North Capital Management is a specialist alternative investment firm offering institutional investors access to early-stage managers, innovative strategies and thematic hedge fund investments.

One of our specialist tools is AlternativeSoft, which supports us in our analytical work. We use AlternativeSoft across the firm, to track portfolio attributions, generate portfolio optimisations and assist in the selection of hedge fund investments. The system enables 47 Degrees to consolidate and analyse a huge amount of disparate data in one place, with ease, supporting efficient investment decision making.

Originally, back in 2006, we looked at other products for portfolio construction and monitoring, and found AlternativeSoft best suited to handle our frequent demands for specific analytical functions.   The system is used for quantitative fund screening and selection, portfolio management as well as risk management. The software allows existing portfolios to undergo simulations of stress tests and provides a comprehensive analysis of portfolio exposures to economic factors and hedge fund strategy styles. A full range of analytical tools such as modified value-at-risk, omega, correlation, regression and maximum drawdown are all seamlessly available.

We also use the system for historical portfolio attribution analysis. The software provides the capability to analyse granular historical performance of each fund, strategy and sector and how each element contributed to overall performance. 

Overall, AlternativeSoft enables us to analyse a huge amount of information within a consistent framework, in an easy to use format. It has made our process of generating returns forecasts for each investment as well as portfolio construction much more efficient. We can draw information and conclusions that allows us to make informed investment decisions. Ultimately this translates to better fund performance for our clients. 

Fraser McKenzie is managing partner and head of research at 47 Degrees North.

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