MIK launches equity finance and tracking system
19 July 2011 New York
Image: Shutterstock
MIK Fund Solutions has released a comprehensive and integrated equity finance tracking and optimisation system for hedge funds and asset managers. The application is designed so managers have the opportunity to reduce and optimise borrow costs, improve reporting and attribution of their financing costs, and improve the overall decision making process around equity financing activities.
By deploying the application, MIK clients obtain a view into all of their financing interactions with their execution brokers, thereby creating a powerful analytic tool for managers to monitor, measure, and evaluate financing activities across a customised array of categories, defined and chosen by the fund.
As hedge funds and asset managers need to continually seek alpha, there is a need to lower and optimise financing costs that have a direct impact on fund returns. Through equity finance data capture, finance and borrow information across multiple periods is automatically and easily retrieved. Such data and analysis is essential to financing decision process, and is integral in assessing current and future position allocations.
A cornerstone of the product is its ability to process a landslide of information contained in the various stock loan data sets from the street. The fully customisable tool ties together all related securities indications from the source files automatically as they become available, and with minimal market data costs incurred by the client using market standard symbology tools available to the general marketplace.
As a commercial proposition, the ability to view financing data across brokers, regions, asset types, portfolio managers, traders, etc., enables managers to have critical information regarding financing activity and providing a tool to act on this information. The system validates the accuracy of barrow charges, automates the recording and tracking of stock loan locates and pre-barrows, and identifies of lower borrow rates and suggests optimisation. The application provides detailed reporting, trend charting, alerts and other tangible measures to assist in the client’s day to day operations.
Said Marshall Saffer, chief operating office of MIKFS: "Basic financing data collection and analysis using MS Excel is no longer sufficient for hedge funds or asset managers in today’s complex trading environments. Rather, firms now demand, as next stage thinking, the ability to use data in a comprehensive and integrated way, to ultimately lower costs around financing and reduce the impact of financing on fund performance."
By deploying the application, MIK clients obtain a view into all of their financing interactions with their execution brokers, thereby creating a powerful analytic tool for managers to monitor, measure, and evaluate financing activities across a customised array of categories, defined and chosen by the fund.
As hedge funds and asset managers need to continually seek alpha, there is a need to lower and optimise financing costs that have a direct impact on fund returns. Through equity finance data capture, finance and borrow information across multiple periods is automatically and easily retrieved. Such data and analysis is essential to financing decision process, and is integral in assessing current and future position allocations.
A cornerstone of the product is its ability to process a landslide of information contained in the various stock loan data sets from the street. The fully customisable tool ties together all related securities indications from the source files automatically as they become available, and with minimal market data costs incurred by the client using market standard symbology tools available to the general marketplace.
As a commercial proposition, the ability to view financing data across brokers, regions, asset types, portfolio managers, traders, etc., enables managers to have critical information regarding financing activity and providing a tool to act on this information. The system validates the accuracy of barrow charges, automates the recording and tracking of stock loan locates and pre-barrows, and identifies of lower borrow rates and suggests optimisation. The application provides detailed reporting, trend charting, alerts and other tangible measures to assist in the client’s day to day operations.
Said Marshall Saffer, chief operating office of MIKFS: "Basic financing data collection and analysis using MS Excel is no longer sufficient for hedge funds or asset managers in today’s complex trading environments. Rather, firms now demand, as next stage thinking, the ability to use data in a comprehensive and integrated way, to ultimately lower costs around financing and reduce the impact of financing on fund performance."
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