Axioma: Creating Insightful Investment Strategies

Axioma: Creating Insightful Investment Strategies

CIO VendorSebastian Ceria, CEO
The capital market data available to portfolio managers and investment firms has increased from terabytes to petabytes in recent times and is expected to grow even more in the years to come. Analysis of this market data has become a significant component for investors as it helps in building mathematical risk prediction models for better ROIs. With these mathematical models, portfolio managers can understand the risks involved, the behavior of each individual asset, and correlations between different stocks and factors that drive the stock return. “Today, investment in stocks, assets or portfolios is all about the trade-off between risk and return,” begins Sebastian Ceria, CEO, Axioma. “Analyzing risks using extensive mathematical models help in predicting how you’re going to get the expected returns.”

New York, NY based Axioma is a provider of innovative risk and portfolio management solutions that unify front, middle, and back office functions at worldwide financial institutions. Axioma develops a set of algorithms for analyzing integrated sets of data, which helps portfolio managers and traders in making better decisions about risk and returns on portfolios. With an emphasis on innovation, outstanding service, and open-platform technology, the company offers its clients more choice, greater flexibility, efficiency, and increased performance. Furthermore, Axioma provides risk models and flexible tools, that empower an organization’s ability to test, implement, and monitor the portfolio-management strategies.

Anticipating, measuring, and managing risk is essential to successful portfolio management. Axioma offers an array of solutions and implementation options, ranging from portfolio optimization to performance analytics, which can be used on a standalone or integrated basis. The company provides a full array of risk-management tools that measure sensitivities, assess risk characteristics, stress test, and build hedges at the portfolio.

Today, investment in stocks, assets or portfolios is all about the trade-off between risk and return

Designed for both highly interactive analyses and batch reporting, Axioma’s tools enable tracking of any risk statistic through time, for increased transparency, enhanced regulatory compliance, and better informed decisions.

‘Axioma Portfolio’ is an integrated suite of tools—Axioma Portfolio Optimizer, Axioma Portfolio Analytics, and Axioma Risk Model Machine. Organizations can gain unparalleled insights into portfolio risk and return with Axioma Portfolio An-alytics. Whereas, with Axioma Risk Model Machine, portfolio managers can create custom risk models that are fully aligned with risk factors needed to construct and optimize portfolios. The Axioma Portfolio Optimizer helps firms in constructing port¬folios, test strategies, and rebalance risk, return, and cost.

Just recently, Axioma released a new functionality for Axioma Portfolio Optimizer, which enables investment managers to optimize portfolios using multi-asset class risk models. With multi-asset class investing on the rise, this critical new connectivity between risk analytics and cutting-edge portfolio construction allows firms to more easily and accurately build or rebalance portfolios. “Firms today are under enormous pressure to better manage risk and understand how different factors impact their portfolios,” says Ceria. This latest release from Axioma represents the company’s commitment to delivering innovations that answer the evolving needs of its clients.

“The secret to our success is the fact that in this business, you have to innovate, but the challenge with innovation is that if you do it in a garage without talking and relating to the clients you may come up with something that nobody wants to buy,” says Ceria. So, Axioma focuses on collaborating and bringing new innovations to its clients in a way that they are actually useful to them. “Our business is all about people, who can relate to the client, and innovate in a way that everybody in the whole organization can be affected,” concludes Ceria.