Hedge fund risk management
A computerized method and system for managing risk associated with a Hedge Fund is disclosed. Information relating to Hedge Funds is gathered and stored as data in preparation for a risk inquiry search relating to a Hedge Fund. Documents and sources of information can also be stored. A subscriber, such as a Financial Institution, can submit a Hedge Fund descriptor for which a risk inquiry search can be performed. The risk assessment or inquiry search can include data retrieved resultant to augmented retrieval methods. Scrubbed data as well as augmented data can be transmitted from a risk management clearinghouse to a subscriber or to a proprietary risk system utilized by a subscriber, such as a risk management system maintained in-house. Risk inquiry searches can be automated and made a part of standard operating procedure for any transaction conducted by the subscriber in which a Hedge Fund is involved.
1. A computer-implemented method for managing risk associated with a Hedge Fund, the method comprising:
gathering, by a computer, data relevant to the Hedge Fund from multiple sources;
aggregating, by the computer, the gathered data according to risk variables;
receiving, via an interface of the computer, an inquiry relating to the Hedge Fund;
iteratively performing the inquiry on the aggregated data and performing augmented searches until an incremental difference between successive results of performing the inquiry satisfies a criterion, wherein data resulting from each augmented search is added to the aggregated data;
associating, by the computer, portions of the aggregated data with the Hedge Fund; and
transmitting the portions of the aggregated data associated with the Hedge Fund from the interface in response to the inquiry.
2. The method of claim 1 wherein the gathered data is gathered exclusively from publicly available sources.
3. The method of claim 1 wherein the inquiry comprises a sponsor of the Hedge Fund.
4. The method of claim 1 wherein the inquiry comprises a partner of the Hedge Fund.
5. The method of claim 1 wherein the inquiry comprises a domicile of the Hedge Fund.
6. The method of claim 1 wherein the inquiry comprises investments made by the Hedge Fund.
7. The method of claim 1 wherein the inquiry comprises a commodity pool operator as defined in the Commodity Exchange Act.
8. The method of claim 1 wherein transmitting the associated portions of the aggregated data is conditioned upon receipt of a contractual obligation not to use the associated portions of the aggregated data for any purpose covered by the Fair Credit Reporting Act.
9. The method of claim 1 wherein the inquiry relates to Hedge Fund window dressing.
10. The method of claim 1 wherein the associated portions of the aggregated data are transmitted exclusively to an institution, such that neither an owner of the computer nor an operator of the computer will have customers or consumers as defined in the Gramm-Leach-Bliley Act.
11. The method of claim 1 wherein transmitting the associated portions of the aggregated data is conditioned upon receipt of a contractual obligation to limit use of the aggregated data for complying with regulatory and legal obligations associated with at least one of: (i) detection and prevention of money laundering, (ii) fraud, (iii) corrupt practices, (iv) organized crime, and (v) activities subject to government sanctions or embargoes.
12. The method of claim 1 wherein transmitting the associated portions of the aggregated data is conditioned upon receipt of a contractual obligation to limit use of the aggregated data for at least one of: (i) prevention or detection of a crime, (ii) apprehension or prosecution of offenders, and (iii) assessment or collection of a tax or duty.
13. The method of claim 1 wherein the inquiry relates to Hedge Fund portfolio pumping.
14. The method of claim 1 wherein the gathered data relevant to the Hedge Fund accurately reports on or consists of a governmental record.
15. The method of claim 1 additionally comprising insuring that the one or more of the multiple sources of gathered data is reputable.
16. The method of claim 1 wherein the inquiry is related to a lockup provision.
17. The method of claim 1 wherein the inquiry comprises an alert list.
18. The method of claim 1 additionally comprising continually monitoring the aggregated data and transmitting any new information related to the Hedge Fund.
19. The method of claim 1 additionally comprising enhancing the gathered data before aggregating the gathered data.
20. The method of claim 1 additionally comprising enhancing the aggregated data.
21. The method of claim 20 wherein enhancing the aggregated data comprises scrubbing the aggregated data to incorporate changes in spelling of datum.
22. The method of claim 20 wherein enhancing the aggregated data comprises utilization of an index file.
23. The method of claim 1 wherein the augmented searches comprise data mining.
24. The method of claim 1 wherein associating portions of the aggregated data comprises using Boolean logic.
25. The method of claim 1 wherein associating portions of the aggregated data comprises relevance ranking.
26. The method of claim 1 additionally comprising transmitting identities of one or more of the multiple sources that are associated with the portions of the aggregated data.
27. A computerized system for managing risk, the system comprising:
a computer server accessible with a system access device via a communications network; and
executable software stored on the computer server and executable on demand, the software operative with the computer server to cause the system to:
gather data relevant to a Hedge Fund from multiple sources;
aggregate the gathered data according to risk variables;
receive an inquiry relating to the Hedge Fund;
iteratively perform the inquiry on the aggregated data and perform augmented searches until an incremental difference between successive results of performing the inquiry satisfies a criterion, wherein data resulting from each augmented search is added to the aggregated data;
associate portions of the aggregated data with the Hedge Fund; and
transmit the portions of the aggregated data associated with the Hedge Fund in response to the inquiry.
28. The computerized system of claim 27 wherein the gathered data is gathered via an electronic feed.
29. Computer executable program code residing on a non-transitory computer-readable medium, the program code comprising instructions for causing a computer to:
gather data related to a Hedge Fund from publicly available sources;
aggregate the gathered data according to risk variables;
receive an inquiry relating to a risk subject;
iteratively perform the inquiry on the aggregated data and perform augmented searches until an incremental difference between successive results of performing the inquiry satisfies a criterion, wherein data resulting from each augmented search is added to the aggregated data;
associate portions of the aggregated data with the risk subject; and
transmit the associated portions of the aggregated data.
30. The computer executable program code of claim 29 wherein the computer instructions further cause the computer to:
perform a certification inquiry relating to the Hedge Fund;
associate portions of the aggregated data with certification parameters related to the Hedge Fund and the certification inquiry;
transmit the certification parameters; and
transmit the portions of the aggregated data associated with the certification parameters.
31. The computer executable program code of claim 29 wherein the computer instructions further cause the computer to generate a risk quotient relating to the Hedge Fund.