"Currently, most risk reporting is opaque and difficult to assess," said Stephen Meyer, head of the alternative investment managers unit at SEI Investments. He believes the combination of RiskMetrics' risk management tools and SEI Investments’ back-office and processing engines should help clients better manage portfolios and help other funds invest in hedge funds.
"As institutions continue to increase allocations to hedge funds they are making it clear that in-depth due diligence and return-based analysis should be augmented with position-based risk assessments,” added Gordon Yeager, head of alternative investments at RiskMetrics.
SEI administers $241 billion in mutual fund and pooled assets, manages $78 billion in assets and processes almost $50 trillion of investment transactions annually. RiskMetrics was spun-off from JP Morgan in 1998.