BlueCrest picks Axioma for quantitative equities analytics

Hedge fund Bluecrest Capital Management has enlisted analytical software provider Axioma for risk data services for its systematic equity strategies, at a time more mechanistic investment approaches are winning favour in Europe.

The $32bn manager will use Axioma’s Robust Risk Models offering for its systematic equity strategies.

The risk models will help BlueCrest in portfolio construction, and act as a base for the London-based firm to build customised risk models.

Frank Fehle, BlueCrest’s product manager for systematic equities, highlighted the “high degree of flexibility and customizability” in Axioma’s products as a reason to select them, after BlueCrest conducted a review of providers of risk models to its systematic equities unit.

Axioma’s Risk Model Machine allows clients to build their own proprietary risk models, using Axioma’s IP, content and core models, and allows them to adjust factors and other parameters appropriately for their own process and approach.

Ian Webster (pictured), Axioma’s managing director, Europe, said: “Axioma is now widely recognized as the industry’s premier provider of risk models. Our rapid growth in this segment serves as testimony to that fact.”

Axioma’s software encompasses various metrics, asset classes and geographies.

It makes prognoses of market volatilities over various timeframes, among other functions, and its factor analytics show how exposure to different market factors have made, or lost, money for those exposed to them.

Using such analytics to select factor exposures has allowed quantitative managers to continue making money, even as stock correlations reached multi-year highs recently, hampering the money-making skills of bottom-up stock pickers.



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