Risk Summit Finds Risk and Portfolio Managers Now Co-Pilots

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Investor Analytics and Rothstein Kass Showcase Risk & Economic Opinion-Makers

The inaugural 2013 Risk Summit, co-sponsored by Investor Analytics LLC (IA) and Rothstein Kass, drew more than 115 attendees from asset allocators and managers alike for a thought-provoking panel of financial experts discussing how to achieve “The Alpha in Risk” coupled with a sweeping economic outlook from Richard Hoey, The Chief Economist of BNY Mellon and The Dreyfus Corporation.

Chief among the Risk Summit findings is that risk managers are at times advising portfolio managers to take more risk, which – especially in the aftermath of large market events and subsequent de-risking – marks a milestone in the industry’s move toward the integration of risk and return management.

Summit panel moderator, Tatiana Segal, Head of Risk Management for Skybridge Capital, kicked off the discussion by asking experts Benjamin Dunn, Head of the Risk Management Consulting Practice for Alpha Theory, Katherine Macleod, Risk Analyst at Senator Investments and John McClenahan, Head of Risk Management for Calamos Investments, to define how risk management is now used to make better decisions – and why? Ms. Macleod opened with the comment that: “If you aren’t measuring alpha or drivers of alpha, you are bound to be leaving it on the table.”

Mr. Dunn and Mr. McClenahan held that it’s imperative to integrate risk management into the decision-making process to generate alpha and enhance returns. “We are in business to take risk,” said Mr. Dunn, emphasizing that “while it’s acceptable to take risk and experience a loss, it’s completely unacceptable to take losses on risk you could have measured but didn’t.”

Mr. McClenahan added that alpha-generating opportunities present themselves when the risk process identifies situations where the market and the portfolio manager have differing views. Panelists agreed that the long-overdue convergence of risk management and the investment decision-making process has been, in part, driven by the demand for transparency.

“Investors are more sophisticated and well-versed in the uses of risk,” said Mr. Dunn. This opens the door for creating a common dialogue to talk about the process for integrating risk analysis with trading decisions – position sizing, entrance and exit timing, and loss limits, for example. Keynote speaker Richard Hoey concluded the 2013 Risk Summit with his compelling outlook for the global economy, noting that – as with past market events – what one party sees as a risk, another views as an opportunity.

The high interest in the Risk Summit reflects the appetite for risk management thought leadership, and Investor Analytics will post highlights from the Summit to its website at http://www.investoranalytics.com/riskon.

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About Rothstein Kass:
Founded in 1959, Rothstein Kass is a premier professional services firm serving privately-held and publicly-traded companies, as well as high-net-worth individuals and families. With more than 1,000 professionals, the firm provides accounting, advisory, auditing and tax services, as well as a full array of integrated services such as litigation and forensic consulting and concierge and tax accounting to clients across industry spectrums and in all stages of development. Rothstein Kass is widely recognized as a leader in the financial services space, consistently ranking among the top CPA firms serving the Hedge Fund, Private Equity, Venture Capital, Broker Dealer and Family Office segments.

At the core of Rothstein Kass’ remarkable success is a commitment to hiring, developing and retaining employees with the same entrepreneurial spirit that permeates the sophisticated business and financial services communities the firm serves.

About Investor Analytics:
Investor Analytics LLC (IA) has been helping financial professionals make better risk decisions since 1999. Through our trusted risk analytic partnerships, IA manages more than $380 billion in assets under analysis. With offices in New York, Boston and London, IA’s clients include global hedge funds, fund of funds, pension funds, money market funds, prime brokers, endowments and foundations with investments in every conceivable asset class. IA’s comprehensive suite of services – including risk aggregation, positions-based and returns-based analyses, dynamic stress testing, historical and what-if scenarios – provides managers and investors with the most transparent view of portfolio risk from every possible angle. http://www.investoranalytics.com

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, relationships, opportunities, taxation, technology and market conditions. These statements may be identified by such forward-looking terminology as “expect,” “look,” “believe,” “anticipate,” “may,” “will,” or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. IA assumes no obligation for updating any such forward-looking statements at any time. For further information please visit: http://www.investoranalytics.com.

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Kathleen O'Toole
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