Cognity risk management software combines qualitative research with quantitative insight, arming fund managers and multi-manager investors with powerful risk analytics tools that:
The key results are:
Supported by superior client and professional services, Cognity risk management software enable strong internal communication and consensus that increase AUM growth and foster long lasting investor relationships.
Cognity risk management software encompasses the full multi-manager analytic process. Beginning with cutting edge backfill techniques that make full use of all data through flexible, insightful and on demand reporting, the primary risk analytics modules include:
Manager Screening and Ranking
Improve manager selection with downside adjusted performance ranking measures. Clearly differentiate between downside risk and upside potential.
Correlations & Distributions Analysis
Expose fat-tails and correlation asymmetry. Establish true correlation through robust outlier detection and minimization.
Reliably identify systematic risk factor drivers with automated factor selection over a database of branded market indices and custom factors. Detect unusual movements and style drift through rolling window risk analytics.
Risk Measurement and Budgeting
Measure and report downside risk using post-modern, fat-tailed risk management software alongside traditional techniques. Actively manage tail risk and gain insight into the true tail risk diversifiers and contributors. Identify risk concentration hotspots by decomposing risk into customized views. Clearly see factor contribution to risk. Gain allocation consensus through downside risk budgeting.
Analyze historical crisis stress tests and understand the effect on current risk exposures. Anticipate the impact of complex markets stress scenarios. Shock manager returns, factor returns, correlations and distributions. Use pre-defined scenarios or create your own.
Optimize performance by minimizing tail risk and maximizing tail return. Specify investment universes and analyst return estimates along with complex investment policy constraints.
Backtesting and Portfolio Analysis
Backtest and compare different objective functions, allocations and proforma portfolios to identify best performing managers and strategies.
Cognity returns-based risk analytics is the gold standard in risk management software and portfolio construction for multi-manager funds and institutional investors.
FinAnalytica President Dr. Boryana Racheva-Iotova discusses how tail risk management can be a key source of added value in long horizon portfolio allocation and optimization.
Joel Nadelman of FinAnalytica and Randy Jones of PerTrac review the challenges that institutional investors face in selecting alternative investment managers and constructing resilient portfolios that balance risk and reward.
Despite their benefits, we understand just how hard it is to effectively implement a fat-tailed risk approach in practice. In this interview, Dr. Boryana Racheva-Iotova, President, talks about how FinAnalytica has overcome the challenge of getting their models to work well in both normal and extreme environments.