We are very excited to announce the launch of Everysk’s new Portfolio & Risk Automation platform.
Before I tell you more about the platform, let me give you a bit of context. Prior to co-founding Everysk, I was the Chief Risk Officer at a $14 billion hedge fund allocator for almost a decade. I was in charge of the quantitative aspects of the business and my group had two related mandates:
1) To ensure our portfolios were well diversified across various hedge funds and strategies.
2) To review all prospective investments in terms of their own risk management.
We were particularly interested in investing in funds that had robust processes to perform recurring tasks without relying on a single person. We were less interested in firms that lacked control over repetitive tasks. Automating these tasks not only alleviated the business risk of relying on a single person, but it also removed operational burdens from the investment teams, allowing them to focus on more high impact tasks. “Process” and “repetitive” are words that stuck in my brain from that time.
It turned out that only well established funds had infra-structure in place to store all their data, to automate their number crunching, and to surface analysis at the right time. Smaller funds, relying on spreadsheets and pre-canned reports from brokers, despite being good at what they did, did not command our institutional dollars because they lacked institutional infrastructure.
As a result, we ended up gravitating towards more established funds. That flight to “quality” funds compounded to some drastic imbalances in the asset management industry:
90% of SEC registered firms managing only 10% of the assets!
Fast forward to Everysk… My belief was that if someone could help those 90% of registered funds to manage more than just 10% of assets, we would be bringing enormous value to the market. Our goal with founding Eversyk, and subsequently launching this platform, is to build a technology company that provides the highest level of infra-tructure sophistication to the money management masses.
When you look at the legacy portfolio analytics providers, it’s a crowded space with some very powerful incumbents. However, the more we looked at the competition, the more we felt they were not addressing the right issues – i.e. the requirements my former fund looked for when we were allocating vast amounts of institutional money into hedge funds. Which brings me back to our launch.
Our multi-asset risk engine still powers the technology. But on top of this, we built three crucial components to increase the productivity and knowledge of our clients, namely:
Imagine a digital workforce to augment your front office workforce. Positions are ingested from multiple sources. Sophisticated risk reports are customized on the fly. Investment guidelines are monitored intraday, every minute. Breaches send alerts and remediation plans are generated. A humming machine where workers talk to each other to accomplish complex tasks. Your leverage is above some threshold? Your duration? And liquidity? Don’t worry. One of the workers will detect that and communicate to another, who will provide the best course of action to decrease any undesirable property. Emails with interactive analytics and insights will be sent to stakeholders. Just sip your coffee.
We run a farm of servers so that you don’t have to. Imagine quickly calculating and storing hundreds of portfolio properties every night, organized and ready to be called upon when needed. Do you want to plot your net exposure in the last 30 days against VIX? Done. Your P&L in high dividend stocks? Done. Your contribution to total return from a quality factor? Done. Having control of all that data is your key to become a better money manager. The most sophisticated funds have these capabilities, and so should you.
3. Intelligent Recall:
Just storing hundreds of properties every night is not sufficient. You have to be able to surface it at the right moment. Imagine an intelligent recall engine that recognizes the type of market environment we are in and recalls historical data that is hyper relevant? How much risk budget do I tend to allocate to cyclical stocks during market corrections? What is my usual credit spread sensitivity in a flight to quality? Am I currently off my usual positioning? Don’t worry, Everysk provides you with that memory booster!
We believe these innovative features enable all money managers to have the same level of insight and sophistication as the largest institutional funds. Give us a shout and we would love to learn how we can be of help. Stay well.
Allan Brik, Co-Founder and CEO
Learn More About Everysk!