Transparency in Hedge Funds

Noviscient is a platform that takes trading strategies from selected emerging managers and trading groups and aggregates and executes these strategies to create customized investment products. One of the benefits of this approach is that we can provide great transparency for investors into how their capital is being deployed. I want to talk about that transparency aspect here.

While we have live trading products, for regulatory reasons we will only be showing our Pure Alpha Model portfolio solution.

Performance

We can first look at the overview from our portal where we see the daily returns of the portfolio as well as being able to drill down to specific periods and compare against different benchmarks.

At the top right, investors can create download a three-page detailed portfolio factsheet on the fly as of the current day, so they don't have to wait for the end of the month to find out what their fund has been doing.

As a side note, we see here the attractions of a "pure alpha" product as it avoided the challenges of the March equity drawdowns.

Overview statistics

We can then look at our analytics that show the source of the returns and how the strategy has performed when equity markets have done badly, as well as some portfolio composition data. In particular, I like our succinct breakdown of portfolio returns into alpha, market, factors and interest rates.

More analytics

And then if the investor wants a deeper understanding, they can see a whole range of performance and risk analytics.

We have more analytics behind this. For example, the allocations to, and performance of, the sub-strategies that create this portfolio performance.

And all this information is available to our investors via our portal as well as via JSON and csv if that is easier.

Summary

This detailed, real-time view on investment performance, risk and exposures ought to be the minimum investors should expect.

If you are an investor that wants better insight into the use of their capital, or a fund manager looking to improve their communications with investors, please come and have a chat (info@noviscient.com).

We are focused on improving the investment management industry for investors and pretty flexible with how we do it.