Scenario Analysis

HedgeSPA’s scenario analysis allows investment managers to efficiently and smoothly apply market scenarios to a portfolio. Our research team proactively scans published research to construct scenarios. The scenario analysis service saves time by automatically sorting through each scenario. HedgeSPA uses typical research ranges, giving investment managers useful scenarios to start with, with the option of changing factor shocks if you do not fully agree with consensus views.

Typically, companies send overnight updates or allows limited flexibility in terms of changing factors. At HedgeSPA, we provide real-time updates, allowing our client to evaluate complex market scenarios’ impact on their portfolios in real-time. Not only will this make it more convenient for our clients, but also make sure that they can make changes in response to the scenario before they miss a good opportunity.

This way, investment managers can use the time previously dedicated to sorting through pages of research and manually analyzing data to instead provide higher-quality service to clients. It is now possible for them to proactively consider market possibilities and professionally analyze portfolios quickly using a multitude of analytics and research all covered by HedgeSPA. This way, not only will investment managers get real time updates and accurate analysis, but also improve their relationship with their clients.


Asset Selection

There are too many assets and too many factors for an investment manager to analyze manually, and there is simply not enough time. HedgeSPA’s Asset Selection Tool can choose assets that deliver persistent performance by removing beta exposures, which are cheap and can be easily implemented by ETFs. Our product detail functionality will show statistics and details about a specific asset, which will make it even easier for investment managers. In addition, when looking at a subuniverse, hedge funds or mutual funds do not have all of the underlying holdings. This functionality actually represents assets by exposure factors, and our clients can define a different set of factors for each asset if they wish to do so.

Anyone can pick assets based on past performance, but our platform can help remove confounding variables, thus making analysis more accurate. By breaking down market beta exposures into multi-asset factors, we can identify the most salient sources of ex-ante shocks by assets and factor exposures. Our watch list will even help save potential assets that investment managers are interested in. Once they manage to determine a good asset, they can even buy directly on the platform.

Through HedgeSPA’s asset selection tool, investment managers can quickly search for assets that they are interested in, compare them to similar ones in a subuniverse, and analyze their performance by defining different sets of factors that are not available from hedge funds or mutual funds. Our platform makes everything much more convenient for our clients, from selecting a good asset, to selling a bad one.


Risk and Return Attribution

In order to get portfolios to certain targets, investors must know how much each of the asset classes and assets must contribute to the overall goal. With our risk and return attribution service, those investors can easily obtain in real time precise calculated results instead of doing complicated calculations themselves. By selecting an existing asset in a portfolio, investors can see how much revenue it is gaining and how much tail-risk it is contributing to the portfolio.

Our platform differs from others in that in addition to basic risk and return attribution, we take into account extreme events. Investors should be compensated for extreme risks that they have taken by investing in an asset with such characteristics, and our platform will identify that for them. In addition, our return attribution functionality will show if implied return is more than the historical choice, thus identifying an element as an ideal choice.

Investors’ jobs are made much easier by the risk and return attribution tool, as they can easily apply calculations to both risk and return spaces to immediately see how an asset performs and what is required to hit the target. Investors can use HedgeSPA’s services to both explain history and forward-looking scenarios and see how their assets perform, under the Historic and Current Scenarios in Analytics of the Selection Panel. The main question answered by this analytics tool is if the return produced is enough to justify the risk, and this will help investors improve their portfolios by selecting the best assets with the lowest risk and highest returns.



Most portfolios contain multiple classes of assets, such as some bonds, some equity, and some commodities. Because of this, the frequency of data processing is not the same for all assets, since some give daily prices, while others only give monthly prices. Most Systems cannot handle multi-frequency data, as they either artificially smooth out monthly prices into a daily time series, or they discard valuable information in order to change daily prices into monthly prices. However, HedgeSPA’s platform is able to analyze prices of several frequencies: it processes all these data separately and precisely and adds them to an existing portfolio.

HedgeSPA allows investment managers to get the most accurate data and provide better client service by its native multi-asset, multi-frequency handling. The system enables full native multi-asset and multi-frequency support with customized instruments and allows our clients to rest at ease knowing the system they are using is not throwing away important information or artificially inflating or deflating prices.


Factor Analysis

For portfolio managers, it is extremely important to understand what is causing bad performance in their portfolios. If there is a draw down from a single asset, it needs to be replaced without changing the investment view. Experienced portfolio managers could isolate the problematic factor and replace the old asset with a new one that does not have the same factor. HedgeSPA’s performance universe comparison does this for you: it neutralizes the beta value to the factor so the manager can focus on stocks and other assets, experience less drawdown risk, and still have the same investment view as before.

Unlike other platforms which usually give superficial analysis and fails to analyze important factors and their effects, HedgeSPA not only determines the most important factors, but also aggregate underlying portfolio exposures to see how market factors drive returns. Our client can even select different classes and sectors to get comparable universes with our performance universe comparison function. Using this, managers can easily find companies and assets in comparable universe that are similar to the ones that are already in their portfolio.

With their knowledge of the factors that are causing problems and our service allowing them to search for companies without such a factor, investment managers can easily maintain the same investment view without a huge drawdown risk due to a larger than expected exposure from that specific factor. Our sophisticated portfolio analytics allow our client to most accurately see the effect of a factor and will eliminate the risk by presenting alternative but similar assets that does not have the factor, thus preventing our clients from being surprised when a single factor leads to the collapse of the entire portfolio.

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