10:58 AM
Lambda Capital to Use Imagine Risk, Portfolio Management Software
New Zurich-based hedge fund Lambda Capital Group will use Imagine Software's hosted portfolio and risk management software, collectively called Derivatives.com.
Because Lambda Capital employs long/short equity and volatility dispersion strategies and trades with a particular focus on equity and index options, warrants, and stocks within the Swiss market, Imagine`s broad cross-asset support was part of this decision, according to Lambda managing partner Simon Biner.
Other attributes were Imagine`s advanced real-time risk capabilities, elimination of IT support requirements, data management, and integration with other third-party systems.
"In today`s highly risk-averse climate," Biner commented, " investors demand that you have a professional-grade risk management tool in place, one that can provide real-time P&L and greeks, user-defined stress testing, `what-if`scenarios, VaR, Monte Carlo simulations, and much more. It`s no longer acceptable to simply employ a spreadsheet-based system."
According to Biner, Imagine's data management support provides all the market data and processing needed for day-to-day operations, with the useful option of overlaying correlation and volatility data at the user's discretion-plus the choice of including additional third-party data as needed. This inherent flexibility was an important selling point to Lambda. "The managed data component of the Derivatives.com offering allows us to conduct rigorous stress testing," explains Biner. "We can choose to upload, for example, proprietary implied volatility surfaces and dividend tables, then utilize customized risk calculations we construct as needed to create testing around any imaginable scenario, strategy, or market condition. This represents crucial flexibility in today`s world and yet another reason we selected Imagine."