Finetix/Cadence Partnership Mitigates Hedge Fund Risk

Financial services consulting firm Finetix recently announced its partnership with Cadence Capital Group LLC, a New York-based hedge fund specializing in options, aggressive long-short and delta-neutral strategies. According to Cadence cofounder Dmitry Babayev, the partnership was designed, in part, to avoid a hedge fund catastrophe of Amaranth-like proportions."Experience shows that market risk is never completely understood and rarely properly quantified, as most recently evidenced by the debacle at Amaranth," says Babayev. "In our partnership with Finetix we look forward to leveraging their depth of development experience in the capital markets to build an extensive analytical platform that will enhance our risk management methodology and help us control our exposure to future 'black swan' events."

David Chapman, CTO at Finetix, said Cadence's insight will help his firm continue to build its hedge fund practice while delivering solutions that fund managers need.

"By partnering with a fund as focused on innovative strategies and fund operations as Cadence is, Finetix will be able to continuously align our technical knowledge with the changing needs of hedge fund managers," said Chapman, in a release.