HedgeServ, a fund administrator that provides solutions to hedge funds and funds of hedge funds, today announced it has expanded its ability to offer real-time valuation of illiquid and complex over-the-counter (OTC) derivatives using market data from SuperDerivatives (SD).
“By incorporating SD into our core technology platform, we have enhanced our ability to provide on-demand valuation directly to clients’ desktops,” said Jim Kelly, chairman of HedgeServ. “Our administrative solutions provide intra-day trade processing, valuation and risk for complex transactions. With SD’s volatility surfaces, we have increased our capacity to price and value our clients’ diverse portfolios in a transparent T+0 environment.”
In the aftermath of the financial crisis it has become imperative that hedge fund administrators provide transparent and accurate prices for hard-to-value instruments. The joint HedgeServ-SD solution enables on-demand portfolio pricing and expands the coverage and quality of HedgeServ’s portfolio valuation capabilities. SD’s global infrastructure combines the required elements of data sourcing, data cleansing, quantitative modeling and market calibration to facilitate the automation and controls required to deliver consistent net asset value (NAV) verifications.
“Selecting a pricing partner is something we did not take lightly,” said Mr. Kelly. “Our analysis showed that SD produced market data levels for volatility surfaces that were representative of tradable market conditions.”
Chris Zingo, senior vice president of the Americas at SD, said, “As a company, we focus on providing extremely wide asset coverage, underpinned by an unparalleled level of accuracy in our derivatives market data. This definitely sets us apart from other data providers in the industry. Due to the current market conditions and investment climate, we see a high demand for our data within the hedge fund community. Clearly HedgeServ is very favorably positioned to respond to those demands.”
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