Powerful fund analytics, dynamic scenario analysis and ease of use supports efficient investment decision-making at 47 Degrees North

Zurich-based 47 Degrees North Capital Management, a specialist alternative investments provider, is using AlternativeSoft for portfolio construction, optimization and portfolio monitoring. Used across the firm the software provides a solution to track portfolio attributions, generate portfolio optimisations and assists in the selection of hedge fund investments. The system enables 47 Degrees to consolidate and analyse a huge amount of disparate data in one place, with ease, supporting efficient investment decision-making.

47 Degrees North offers a range of alternative investment fund of funds to institutional investors, supported in its analytical work by AlternativeSoft’s software. Fraser McKenzie, managing partner at 47 Degrees North commented, “Originally, back in 2006, we looked at other products for portfolio construction and monitoring, but found AlternativeSoft best suited to handle our frequent demands for specific analytical functions.

"We have now been working in close partnership with AlternativeSoft for over 5 years – providing detailed technical input and beta testing from a user’s point of view. We have consistently found the responsiveness and technical know-how of AlternativeSoft to be outstanding.”

AlternativeSoft is used by 47 Degrees for quantitative fund screening and selection, portfolio management as well as risk management. The software allows existing portfolios to undergo simulations of stress tests and provides a comprehensive analysis of portfolio exposures to economic factors and hedge fund strategy styles. A full range of analytical tools such as modified value-at-risk, omega, correlation, regression and maximum drawdown are all seamlessly available.

The system is also used for historical portfolio attribution analysis. The software provides the capability to analyse granular historical performance of each fund, strategy and sector and how each element contributed to overall performance.

Fraser McKenzie stated, “AlternativeSoft enables us to analyse a huge amount of information within a consistent framework, in an easy to use format. It has made our process of generating return forecasts for each investment as well as portfolio construction and monitoring much more efficient. We can draw information and conclusions that allows us to make informed investment decisions. Ultimately this translates to better fund performance for our clients.”

Laurent Favre, founder, CEO and partner at AlternativeSoft said, “Knowledge is power, and the more that a portfolio manager understands about his/her investments the better decisions they will make. However, being able to analyse enough data easily can be difficult and time consuming. At AlternativeSoft we have taken our deep understanding of quantitative theory to build mathematical models that significantly streamline the process of analysis and calculation.

"This is coupled with the widest range of investment fund data feeds currently available which are automatically assimilated within the platform. This provides an extremely powerful and yet easy to use tool that streamlines many of the processes within portfolio management, saving time and supporting even better decision making.”