Risk · long/short equity

Ten things a quarterly risk report wasn't showing

A long/short equity manager wanted to know what was driving the book's risk. We went well past standard reporting — and found ten action points it was missing.

10
Prioritised findings
30+
Exposure metrics beyond the standard models
Long/short equity fund
Client

We ran the portfolio through two commercial factor models — Bloomberg MAC3 and the Axioma equity models — then went further: more than thirty exposure metrics standard models don’t cover, thematic baskets, historical crash-and-rebound scenarios, and an analysis of trading behaviour.

It produced ten distinct, ranked findings. The largest was a structural beta mismatch between the long and short books: in a crash scenario the fund participated in the downside far more than its headline beta implied. Delivered as a single written review, with concrete, prioritised recommendations.

This is the kind of work that makes our software fit: we understand the business, not just the code.

Have a project in mind?

A short intro call is the fastest way to find out if we're a fit.

Get in touch