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Funds of Funds Picks Risk Management Technology

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MORRISTOWN, N.J. (HedgeWorld.com)–Adapting its portfolio to include risk budgeting techniques, Prisma Capital Partners now uses Riskdata’s FOFiX software to improve its risk management.

Prisma’s business was launched earlier this year as a joint venture between three former Goldman Sachs partners and Aegon N.V.’s U.S. investment arm. The firm acquired Aegon’s hedge fund investment management team in March (see ).

Emanuel Derman, a former managing partner at Goldman Sachs, heads up the fundsof funds risk management program. The firm seeks to offer customized portfolios to institutional clients that seek investment returns uncorrelated to broad equity or fixed-income indexes.

“We believe that Riskdata will help us analyze the style consistency of the funds we invest in, and assist us in estimating the effects on our P&L of major market moves, thus providing effective risk transparency for our portfolios,” said Mr. Derman, in a statement.