Decompose manager risk, surface hidden beta exposures and stress-test every allocation against historical regimes. The risk management platform trusted by pension funds, endowments, family offices and fund of funds managing $1.5tn+ in assets.
Manager Risk, Decomposed
Skill vs beta vs hidden exposure
The problem
Headline returns tell you nothing. Is this manager skilled, or just riding a factor that’s about to turn?
Decompose risk
Beta · factor exposures · idiosyncratic alpha
Surface hidden beta
Market-neutral funds running directional risk
Stress & aggregate
Correlations · liquidity · cross-manager
A manager's headline returns tell you almost nothing about the risks they're actually taking. AlternativeSoft decomposes every manager's risk profile along five dimensions.
Full look-through into every manager's actual holdings, sector tilts, regional exposures and counterparty risk — not just the strategy label on the fact sheet.
Separate true skill (alpha) from market beta and common factor tilts. See which managers are generating return through skill vs simply riding a factor.
Flag when a "market-neutral" or "absolute return" fund is actually running directional risk. Catches the classic blow-up patterns before they hit your portfolio.
Alert when a manager's factor exposures, sector tilts or net leverage change materially over time. Crucial for ongoing monitoring of multi-year mandates.
Model what your risk profile looks like if you cannot exit positions when you need to. Combines volatility, gates, lock-ups and underlying-position liquidity.
Replicate any manager's return stream with liquid, low-cost factors to understand exactly what you're paying alpha fees for — and stress-test the replication.
From sourcing managers to producing the trustee risk report, every stage of the institutional risk workflow is supported.
Hedge fund risk management software is a platform that quantifies, monitors and stress-tests the risks in a hedge fund or multi-manager portfolio. It decomposes returns into market beta, factor exposures and idiosyncratic alpha; surfaces hidden risks (off-benchmark factors, style drift, concentration); models drawdown and tail risk; and runs scenario analyses against historical or hypothetical market regimes.
AlternativeSoft addresses manager risk along five dimensions: (1) Exposure transparency — full look-through into every manager's actual holdings and factor exposures, not just the strategy label; (2) Risk decomposition — separating skill (alpha) from market beta and factor tilts; (3) Hidden beta detection — flagging when a "market-neutral" or "absolute return" manager is actually running directional risk; (4) Style drift detection — alerting when a manager's factor exposures change over time; (5) Liquidity-adjusted risk — modelling what happens to your risk profile if you cannot exit positions when you need to.
Over 4,000 risk metrics across the platform, including: Value at Risk (VaR, Conditional VaR / Expected Shortfall, liquidity-adjusted VaR), drawdown analytics (max, average, time-to-recovery, drawdown attribution), volatility decomposition, factor exposures (Fama-French, Carhart, custom), correlation matrices (rolling, stressed, regime-conditional), Sharpe / Sortino / Calmar / Omega, and tail risk (skewness, kurtosis, expected tail loss).
Yes. Stress test any manager or portfolio against 2008 GFC, 2020 COVID, 2022 rate-hike shock or any user-defined scenario. Monte Carlo simulation is also built in for forward-looking scenarios beyond the historical record.
Yes. AlternativeSoft is used by pension fund and endowment risk teams for trustee-ready risk reports, regulatory submissions (Solvency II, IORP II, Form PF) and ongoing manager monitoring. Liability-driven and funded-ratio reporting are built in.
Yes. The platform integrates with Bloomberg, eVestment, Morningstar, Preqin, Pitchbook, HFR, Albourne and other providers. Exports to Excel, PowerPoint, PDF and via API to your in-house risk warehouse.
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