Toomre Capital Markets LLC

Real-Time Capital Markets -- Analytics, Visualization, Event Processing, and Intelligence

Hedge Fund Technology: Sophis VALUE vis-à-vis Advent Geneva??

As this company announcement on FinExtra.com explains, "Sophis, a leading provider of cross-asset, front-to-back risk and portfolio management solutions, announced that Jabre Capital Partners, based in Geneva, has selected Sophis VALUE as its portfolio and risk management solution. Through VALUE, Jabre Capital Partners benefits from a fully front-to-back, cross-asset system that effectively supports the investment company's hedge fund business. Sophis VALUE's one-stop-shop architecture in terms of asset classes, risk analysis, fund specific functionalities (real-time NAV, fees management, etc.) and STP trade processing makes it a unique product in the hedge fund industry."

Last year, when Jack Meyer and team left Harvard Mangement Co. (and the management of the Harvard endowment) to start Convexity Capital Management LP as the largest hedge fund start-up ever, they selected a competing back and middle office system from Advent Software called Advent Geneva. Here is a link to the press release explaining why Convexity Capital selected Advent Geneva. As the Advent Geneva web site explains "8 of the top 10 fund administrators servicing alternative investments, 8 of the top ten prime brokerage firms and 15 of the largest 25 hedge funds" all use the Advent Geneva product.

Geneva offers "revolutionary global portfolio accounting system. Geneva® delivers the power and sophistication to tackle these investment challenges, and many more. It gives investment professionals the real time information they need, and the back office power, efficiency, and ease of use to integrate with other systems. [It] was designed in conjunction with some of the most demanding investment firms in the world, with an eye toward dramatically increasing operational efficiency in high volume, 24x7 operating environments. Today, as a result of Geneva’s revolutionary architecture, firms are reporting cost savings of up to 40% across their operations."

Toomre Capital Markets LLC is more familiar with the Geneva product produced by San Francisco-based Advent Software. We are interested in learning more about Sophis VALUE which primarily has been marketed to European customers. Clearly two major start-up hedge funds made different selections for complicated ( i.e. securities and derivatives with embedded options) global (i.e. multi-currencies) multi-asset class (i.e. equities, fixed-income, credit derivatives, commodities, foreign exchange, structures / hybrids and derivatives on all of these products) real-time portfolio management and accounting solutions. Do any readers have views about either solution that they would care to share? Which do you think is better?