Global Hedge Fund Company
At QuIC, we’re not satisfied with the status quo. That’s why a calculation that used to take more than 12 hours can now be computed in less than eight minutes. This leading provider of investment products experienced the benefit of this difference first hand.
The Client: A leading global provider of alternative investment products and solutions and one of the world’s largest hedge fund companies.
The Challenge: It all started with a request from the Board of Directors. They wanted to include future earnings projections in their regular reporting. But this was not a simple request. In fact, this required the development of a complex earnings-volatility model which was not easy to achieve using the company’s existing in-house risk analytics system. Not only was their existing system incapable of performing the calculations, it was inadequate to meet the demands of a rapidly-changing market. Simply put, it was too slow for rapid “what-if” simulations of complex models. On top of that, it was a closed system that did not allow for the customisation or manipulation of analytics tools.
The Solution: The client approached QuIC requesting that a custom earnings volatility model be developed in a three-month timeframe. QuIC was more than happy to oblige. The solution developed for this client was open, modular and expandable, and was developed using QuIC Script™, QuIC’s highly intuitive scripting language.
“We always relish the opportunity to prove our technology’s flexibility and value, and this was a chance to do so with one of the world’s largest and best managed hedge fund companies,” said Nigel Cairns, President and CEO of QuIC.
The solution implemented for this client featured an Excel spreadsheet as its front end. The QuIC Engine™, an exceptionally fast vector-based calculation platform, provided the power for analytics and simulations. It was so fast, in fact, that even on a PC with an Intel single processor, the QuIC solution performed calculations in eight minutes that had previously required 12 hours.
The results: Rather than running simulations overnight – and hoping that nothing failed – risk management professionals can now freely change variables and run them repeatedly in real time, in the most familiar of GUIs, with results ready in mere minutes. Today, the risk management department is equipped to:
- Provide existing and newly created projections for their Board and shareholders, thus improving the company’s corporate governance and transparency.
- Stress-test their calculations (run more scenarios and calculations, while changing fundamental assumptions and variables, such as interest rates)
- Simulate client funds far into the future
- Improve decision-making and increase profits by tapping into improved calculations and scenarios.