Factor analysis reveals what is really driving your hedge fund portfolio's returns — and how much genuine alpha your managers are generating versus cheap systematic risk premia. AlternativeSoft decomposes both individual fund and portfolio-level returns across equity, credit, rate and alternative risk factors.
Without factor analysis, investors cannot determine whether they are paying 2-and-20 for genuine alpha or for systematic exposure available more cheaply elsewhere.
Multi-factor regression with full statistical diagnostics — applied at individual fund and portfolio level simultaneously.
Identify genuine alpha and manage factor risk across your entire alternatives allocation.
Regress fund and portfolio returns against a comprehensive factor library. Full statistical confidence reporting alongside every factor loading.
After controlling for all factor exposures, isolate the genuinely unexplained alpha — the true measure of manager skill that justifies 2-and-20 fees.
Aggregate individual manager factor exposures at portfolio level. Identify total sensitivity to equity beta, credit spread, rates and other systematic factors.
Track how factor exposures change over time using rolling window regression. Identify when a manager's factor profile shifts significantly.
Simulate portfolio impact of factor shocks — equity correction, credit spread widening, rate rise — based on your portfolio's current factor sensitivities.
Detailed factor attribution reports for due diligence, investment committee presentations and regulatory reporting requirements.
Choose any individual fund or build a portfolio. The factor analysis engine uses the full return history automatically.
Choose your factor model or use the default institutional library. Results with full statistical diagnostics appear in seconds.
View factor exposures at portfolio level. Adjust allocations, add diversifying managers or hedge systematic factor concentrations.
Verify alpha claims statistically before committing capital. Determine whether returns represent genuine skill or systematic exposure available more cheaply elsewhere.
Learn moreEnsure your multi-manager portfolio provides genuine factor diversification. Identify hidden concentrations that standard performance analysis misses.
Learn moreMeet investment committee and regulatory requirements for factor risk monitoring across your entire alternatives allocation.
Learn moreAlternativeSoft streamlines many useful performance-based analytics including portfolio optimisation, peer evaluation, and relative analyses. An intuitive platform that is additive to our processes.
A practical and user-friendly tool used as part of our portfolio construction and risk management process. Their extensive support and responsiveness provides real added value.
From statistical analysis on a single hedge fund to portfolio construction, risk analysis and stress testing — one of the most effective and intuitive tools I have handled.
Join 150+ institutional investors who rely on AlternativeSoft to select and monitor funds. Book a personalised demo with our team today.
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