Risk · long/short equity

Ten things a quarterly risk report wasn't showing

A long/short equity manager wanted to know what was really driving the book's risk. We went well past standard reporting — and found ten action points it was missing.

10
Prioritized findings
Factor analysis
Books reviewed, factor by factor
Long/short equity fund
Client

A long/short equity manager wanted to understand what was really driving the book’s risk, beyond standard reporting. We ran the portfolio through two professional factor models — Bloomberg MAC3 and the Axioma equity models — then went further: thirty-plus exposure metrics standard models don’t cover, thematic baskets, historical crash-and-rebound scenarios, and an analysis of trading behaviour.

It surfaced ten distinct, ranked findings. The largest was a structural beta mismatch between the long and short books: in a crash scenario the fund participated in the downside far more than its headline beta implied. Delivered as a single written review the PMs would actually read — with concrete, prioritized recommendations.

This is the kind of work that makes our software fit: we understand the business, not just the code — and we’re good at it.

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