Case Study

Genesis Hedge Fund Manager

Overview

A leading hedge fund needed a trade capture and management solution to support its daily hedge fund activities. The group chose the Genesis System, by EXIS Consulting, as the foundation for building its solution.

The Company

The hedge fund was founded in 1999 immediately after the Russian market crisis. The fund has grown from $50m under management to over $500m in total capital under management. The hedge fund specializes in trading exotic loans, sovereign EM bonds, and derivatives utilizing a prime broker for execution. The asset managers oversee four distinct funds and make use of a fund administration company as a custodian.

The Problem

Rampant use of in-house spreadsheets to manage trades and positions was both error prone and unauditable. Disparate data produced an administrative nightmare during trade research or when creating management reporting. Monthly reconciliation of positions and P/L were not sufficient to resolve time sensitive trade matching issues or position-break concerns.

The group required a comprehensive solution to capture, store, audit, and process the daily trading and settlement activities of the fund manager. The system would need to automate a wholly manual process, which would allow for an increase in trading volume and provide reporting on real-time basis.

The Solution

EXIS Consulting was selected to deliver the Genesis System as a core application to manage the funds trading activities. The previously labor intensive and error prone procedures have been automated through implementing EXIS software and custom consultancy programming.

The Results

The hedge fund can easily manage the trading operations with minimal operations staff allowing its fund managers to concentrate on trading opportunities in the market. Reliability and readiness of numbers give confidence to investors and facilitate business growth. Less errors, shorter hours, higher trading volumes and greater profitability ensure success will continue.

The Benefits of Genesis Hedge Fund Manager

Objective	Benefits Achieved
Provide a single unified view that display real-time positions across asset classes	Genesis desktops provide real-time positions, P/L and risk numbers to all user desktops at a single glance
Quick, easy trade capture through standard user-interface	One interface for all instruments reduces errors by using predefined pick-lists for reference tables
Easily allocate market trades across different internal entities	Genesis accurately captures trades with a broker/dealer and then allocates the trade amounts to specific internal portfolios for easy research and settlement
Set risk management alerts	Genesis views are set to immediately show value at risk limit breaks based on predetermined thresholds
Automated Mark to Market to evaluate performance	Interfaces with outside data vendors allow market prices, exchange rates, and curve information to be easily imported
Produce daily reconciliations	Automated reporting to prime brokers and fund administrators means position breaks and trade capture errors are caught on a daily basis
Reduce time to resolve trade queries	Staff uses interfaces specifically designed to speed up trade research and verification. Data views are easy to manipulate, filter, and export
Provide a universal interface to data and reporting	Genesis interfaces follow a readily understandable convention while reporting templates have a flexible and consistent feel
Increase credibility with investors	As a fully auditable system, Genesis is secure, stable and scalable and its reporting output is professional and comprehensive
Lay foundation for business growth	With ability to model new instruments easily, the Genesis application is well suited for the growth of new trading entities, strategies or asset classes