SOURCE: youDevise

November 14, 2006 07:00 ET

youDevise Expands the HIP to Help Funds of Hedge Funds Better Manage FX Risk

NEW YORK, NY and LONDON -- (MARKET WIRE) -- November 14, 2006 --youDevise Limited, a leading provider of on-demand portfolio workstations for financial markets, today announced a significant expansion of the FX Module in its web-based Hedge Fund Information Provider (the HIP) to help funds of hedge funds (FoHFs) better manage risk and reduce the cost of cross-border transactions.

The new module manages the hedging of both capital and portfolio FX exposure, at far greater speed, simplicity and accuracy than home grown spreadsheets, which many funds of hedge funds currently employ. With the FX Module, managers set the percentage of exposure to hedge, and the system calculates the hedges required for each currency. Managers also set the acceptable hedge tolerance, and the system highlights any hedges still required over time. The result is a detailed forecast of currency exposure and hedging needs.

Development of the expanded FX Module was driven in large part by London-based Absolute Return Partners, led by renowned investor Niels C. Jensen, which recently adopted the HIP as its primary portfolio management platform for its funds of hedge funds business.

"Many funds of hedge funds want the ability to attract investments in Euros, Pounds or Dollars, and then to invest in hedge funds in Europe, the UK or the States," said Owain McNeill, Business Manager of Alternative Investments at youDevise. "At the same time, cross-border investors want to ensure their portfolio gains are not cancelled by currency losses. The challenge is managing these complex computations to ensure funds of hedge funds are currency neutral and managing their FX in line with targets."

"The HIP's expanded FX Module solves these problems by providing an accurate picture of currency exposure and hedges in any denomination, as opposed to only the fund's native currency," Mr. McNeill explained. "Previously, this procedure involved complex, data-intensive calculations that are difficult to program manually into spreadsheets, even though many funds of hedge funds managers try. Our main FX screen generates detailed information on currency exposure, target and actual hedge amounts, highlighted in a series of easy to read tables and reports that give managers the 'big picture,' but also allows them to drill down to all underlying data. With more accurate and timely FX knowledge, the HIP can also help funds reduce hedging costs."

"Combined with the HIP's existing modules for Performance, Liquidity and Trading, the HIP makes it much easier for funds of hedge funds to manage distributions to investors, or move money from one hedge fund to another, without generating currency losses," Mr. McNeill concluded.

About The HIP

The HIP is the first on-demand portfolio workstation for solving critical fund of hedge fund management, risk, compliance and cost issues, particularly those resulting from over-reliance on error-prone spreadsheets. The HIP also introduces Straight Through Processing (STP) methods to the funds of hedge funds industry. Known for its use in stock transactions, STP enables funds of hedge funds and their administrators, as well as the hedge funds in which they invest, to exchange data electronically, reducing reliance on error-prone phone calls, faxes, emails, and multiple spreadsheet entries.

Major capabilities of the HIP include Portfolio Management, for tracking and evaluating investments in underlying funds; Shadow Accounting for monitoring, reconciling and forecasting portfolio cash, payables/receivables, and FX balances; Liquidity, for determining how much cash is redeemable from hedge funds over time; and FX Hedging, calculating exposure, hedging needs and determining gains/losses on existing hedges. The HIP also provides compliance with investment guidelines, eliminates the need for multiple data entry, and enables automatic electronic feeds from external third-party administration and in-house systems.

The HIP is securely accessed using a standard Internet browser on an on-demand basis, and supports funds of hedge funds of all sizes and complexities. The web-hosted format allows customers to initiate its use in days, with full migration in less than a month's time, and provides exceptional security. Annual fees are a fraction of the cost of developing in-house systems. The underlying technology is the same as that employed by youDevise to build the Trade Idea Monitor (the TIM), used by more than 100 brokers and asset managers world-wide, and to build the Repository & Distribution Center (RDC) for Citigroup, Credit Suisse, Dresdner Kleinwort and Merrill Lynch. The RDC is an industry utility that enables the secure exchange of trade ideas between brokerage firms and their money manager and hedge fund clients.

About youDevise Limited

youDevise Limited (www.youDevise.com), based in London, provides on-demand portfolio workstations for financial markets. The company's leading applications provide portfolio management for liquid and illiquid assets. They include the Trade Idea Monitor (the TIM), for the high-speed communication of equity trade ideas and portfolio ideas between institutional brokers and their money manager and hedge fund clients, and the Hedge Fund Information Provider (the HIP), the first commercially available portfolio management system for funds of hedge funds. All of youDevise's applications leverage its proprietary Information Distribution Server (IDS), which facilitates the exchange of data between different market participants.

Contact Information

  • Contacts:

    Jeff McKenzie
    Public Relations
    Anreder & Company,
    Email Contact
    +1-212-532-3232

    Owain McNeill
    Business Manager, Alternative Investments
    youDevise Limited,
    Email Contact
    +44 (0)20 7826 4319