Risk Analysis on the Fly: Fast Markets, Complex Portfolios
More-active measurement and management of risk in complex portfolios and across complex trading organizations is a potential source of profound differentiation. Despite many losses, a number of strategies performed well throughout 2008. One common theme among these success stories involved highly-automated and high-frequency trading, predominantly in exchange-traded securities, such as equities, options and futures. In fact, of the top 10 best-performing hedge fund strategies of 2008, six depend upon some mix of the kind of on-the-fly analytics discussed in this report.