The State of Wisconsin Investment Board (SWIB) is leading the industry with their cutting edge use of technology to drill down into their hedge fund portfolios. An estimated 3.5% of SWIB’s $99 billion in assets is allocated to hedge funds as of 2015. While other large asset managers have struggled to maintain the complexities involved in hedge fund investments, SWIB has exceled in managing these assets using MSCI’s RiskMetrics HedgePlatform risk analytics tool.
There are over 1,400 hedge funds with position-level holdings data on this platform which gives SWIB the advantage of having 90% coverage of their hedge fund managers. According to a case study by MSCI, “Asset owners like SWIB can conduct analysis that would not be possible without reported holdings. For example, SWIB can model market scenarios, including sudden changes in equity markets, interest rates, credit spreads and exchange rates to uncover risks in their hedge fund portfolios.”
Citisoft is proud to have assisted SWIB in the initiative to implement RiskMetrics HedgePlatform and bring their operations to the leading edge of the industry. Read Institutional Investor’s feature on this program here.