Key Hedge Fund Operational Areas
Risk Management
Real-time portfolio risk monitoring across multiple strategies and asset classes with regulatory compliance.
Performance Attribution
Precise return calculation by strategy and security with daily reconciliation and investor reporting.
Regulatory Reporting
Automated compliance with Form PF, CFTC reporting, and prime broker reconciliation requirements.
Operational Efficiency
Streamlined trade settlement, NAV calculation, and investor communications with operational resilience.
Real-Time Risk Management & Monitoring
The Challenge
Multi-strategy hedge funds often struggle with fragmented risk systems across different strategies, limiting their ability to respond to intraday market movements and meet regulatory requirements.AMOS Solution
- Unified Risk View: Integration of prime brokers, portfolio management, and market data systems
- Real-time Monitoring: Continuous VaR, stress testing, and scenario analysis across all strategies
- Automated Alerts: Standardized limit monitoring and escalation procedures
- Regulatory Compliance: Automated risk reporting and stress testing capabilities
Results
- Real-time monitoring across multi-billion dollar portfolios with sub-second updates
- 95% faster risk alert response (hours to minutes)
- 100% compliance with regulatory risk monitoring requirements
- Enhanced ability to respond to market volatility and protect capital
Performance Attribution & Analytics
The Challenge
Quantitative hedge funds require precise performance attribution across multiple strategies with daily reporting requirements, but manual reconciliation creates delays and accuracy issues.AMOS Solution
- Real-time P&L Calculation: Continuous performance calculation with intraday updates
- Multi-level Attribution: Strategy, sector, security, and factor-based analysis
- Automated Reconciliation: Continuous matching with prime broker data
- Custom Reporting: Investor-specific performance presentations and analytics
Results
- 100% automation of daily P&L calculation (2-3 hours to real-time)
- Improved reconciliation accuracy from 85% to 99.5%
- Enhanced attribution granularity from strategy to security level
- Same-day investor reporting instead of next-day delivery
Regulatory Reporting & Compliance
The Challenge
Systematic trading funds face increasing regulatory complexity with multiple reporting requirements, often consuming significant resources and creating compliance risks.AMOS Solution
- Automated Report Generation: Template-driven Form PF, CFTC, and AIFMD reporting
- Real-time Validation: Continuous data validation and error checking
- Audit Trail Management: Complete documentation with data lineage tracking
- Proactive Monitoring: Automated exception alerts and regulatory change tracking
Results
- 90% reduction in regulatory reporting preparation time
- Zero regulatory findings in recent examinations
- Continuous audit readiness with complete data lineage
- Enhanced compliance confidence through automated validation
Operational Efficiency & NAV Calculation
The Challenge
Credit-focused hedge funds often spend significant resources on daily NAV calculation and investor communications, with manual processes creating operational risk and limiting scalability.AMOS Solution
- Automated NAV Calculation: Real-time pricing with multiple data sources and corporate action processing
- Expense Allocation: Automated management fee and expense calculations
- Investor Accounting: Real-time investor-level NAV and performance tracking
- Operational Workflows: Integrated trade settlement, pricing, and reporting processes
Results
- 85% reduction in daily NAV calculation time (3-4 hours to 30 minutes)
- Daily automated investor statements instead of weekly manual processes
- 90% reduction in operational errors
- Enhanced scalability through process automation
Key AMOS Capabilities for Hedge Funds
Risk Management Suite
- Real-time VaR, stress testing, and scenario analysis across all asset classes
- Automated limit monitoring and regulatory compliance reporting
- Multi-strategy correlation analysis and portfolio optimization
Performance Analytics Platform
- Real-time attribution analysis with factor decomposition
- Benchmark comparison and risk-adjusted return calculations
- Investor-specific performance reporting and analytics
Regulatory Compliance Hub
- Automated Form PF, CFTC, and AIFMD reporting with audit trails
- Exception management and regulatory change tracking
- Complete data lineage and compliance documentation
Operations Automation
- Real-time NAV calculation with investor-level detail
- Automated trade settlement and reconciliation
- Streamlined investor communications and reporting
Implementation Approach
AMOS follows a practical three-phase implementation:- Risk & Performance Foundation (Months 1-2): Integrate core systems and establish real-time monitoring
- Advanced Analytics (Months 3-4): Deploy sophisticated risk models and performance attribution
- Full Automation (Months 5-6): Enable complete operational automation and AI-powered insights
Expected Outcomes
Hedge funds typically achieve:- Operational Efficiency: Significant reduction in risk management and reporting costs
- Enhanced Performance: Improved alpha generation through better risk management
- Regulatory Confidence: Automated compliance with zero regulatory findings
- Scalability: Ability to manage increased AUM with same operational team
Strategy-Specific Benefits
- Long/Short Equity: Enhanced alpha generation and real-time risk monitoring
- Multi-Strategy: Improved capital allocation and cross-strategy optimization
- Quantitative/Systematic: High-frequency processing and automated decision support
- Credit/Fixed Income: Specialized credit risk monitoring and compliance