Building a 40-Act System: Case Study

For more than 20 years, TS Imagine has built risk management systems for major banks, brokerage houses, hedge funds, funds of funds, and pension funds. “We are a cross-asset firm, and we do everything from equity, fixed income, currencies and commodities to all forms and flavors of derivatives,” says TS Imagine’s Scott Sherman.

The biggest technology challenge in the liquid alternatives space is the need for flexibility in a system that can monitor compliance and meet specific regulations. In one instance of the innovative solutions being devised, TS Imagine collaborated with Larch Lane Advisors to develop its solution for ’40 Act funds.

Larch Lane Advisors is a fund of hedge funds that launched the Rothschild Larch Lane Alternatives Fund in July 2014. The firm had been using TS Imagine’s investment risk management software to track hedge fund investments, portfolio concentrations, volatilities and traditional risk analytics.

“We worked with TS Imagine to develop a dashboard that sits on top of the existing system that tracks all of the requirements related to regulated investment companies and ’40-Act Funds,” says David Katz, Larch Lane’s CEO. The tool was developed to monitor all of the limits on a daily basis. All of the positions come from the hedge funds on the trade dates, which are aggregated into TS Imagine’s underlying system and can be assessed to determine where the multi-manager fund stands relative to the limits on a daily basis.  Read More

Building a 40-Act System