Hedge fund risk management

• US 20030236742A1
• Filed: 06/17/2003
• Published: 12/25/2003
• Est. Priority Date: 03/20/2001
• Status: Active Grant

• Current Assignee: Regulatory DataCorp, Inc. (Moody's Corporation)
• Original Assignee: Regulatory DataCorp, Inc. (Moody's Corporation)
• Inventors: Lawrence, David
• Granted Patent: US 8,069,105 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A computerized method and system for managing risk associated with a Hedge Fund is disclosed. Information relating to Hedge Funds is gathered and stored as data in preparation for a risk inquiry search relating to a Hedge Fund. Documents and sources of information can also be stored. A subscriber, such as a Financial Institution, can submit a Hedge Fund descriptor for which a risk inquiry search can be performed. The risk assessment or inquiry search can include data retrieved resultant to augmented retrieval methods. Scrubbed data as well as augmented data can be transmitted from a risk management clearinghouse to a subscriber or to a proprietary risk system utilized by a subscriber, such as a risk management system maintained in-house. Risk inquiry searches can be automated and made a part of standard operating procedure for any transaction conducted by the subscriber in which a Hedge Fund is involved.

Claims

1. A computer-implemented method for managing risk associated with a Hedge Fund, the method comprising:

gathering data relevant to a Hedge Fund from multiple sources;

aggregating the data gathered according to risk variables;

receiving an inquiry relating to the Hedge Fund;

associating portions of the aggregated data with the Hedge Fund; and

transmitting the portions of the aggregated data associated with the Hedge Fund.

2. The method of claim 1 wherein the gathered data is gathered exclusively from publicly available sources.

3. The method of claim 1 wherein the inquiry comprises a sponsor of the Hedge Fund.

4. The method of claim 1 wherein the inquiry comprises a partner of a Hedge Fund.

5. The method of claim 1 wherein the inquiry comprises a domicile of the Hedge Fund.

6. The method of claim 1 wherein the inquiry comprises investments made by the Hedge Fund.

7. The method of claim 1 wherein the inquiry comprises a commodity pool operator as defined in the Commodity Exchange Act.

8. The method of claim 1 wherein transmitting the associated portions of the aggregated data is conditioned upon receipt of the contractual obligation not to use the associated portions of the aggregated data for any purpose covered by the Fair Credit Reporting Act.

9. The method of claim 1 wherein the inquiry relates to Hedge Fund window dressing.

10. The method of claim 2 wherein the associated portions of the aggregated data is transmitted exclusively to an institution, such that the transmitter will have neither customers nor consumers as defined in the Gramm-Leach-Bliley Act.

11. The method of claim 1 wherein transmitting the associated portions of the aggregated data is conditioned upon receipt of a contractual obligation to limit use of the aggregated data for complying with regulatory and legal obligations associated with at least one of:

(i) the detection and prevention of money laundering, (ii) fraud, (iii) corrupt practices, (iv) organized crime, and (v) activities subject to government sanctions or embargoes.

12. The method of claim 1 wherein transmitting the associated portions of the aggregated data is conditioned upon receipt of a contractual obligation to limit use of the aggregated data for at least one of:

(i) the prevention or detection of a crime, (ii) the apprehension or prosecution of offenders, and (iii) the assessment or collection of a tax or duty.

13. The method of claim 1 wherein the inquiry relates to Hedge Fund portfolio pumping.

14. The method of claim 1 wherein the gathered data relevant to a Hedge Fund accurately reports on or consists of a governmental record.

15. The method of claim 1 additionally comprising the step of insuring that the source of gathered data is reputable.

16. The method of claim 1 wherein the inquiry comprises to a lockup provision.

17. The method of claim 1 wherein the inquiry relating to a Hedge Fund comprises an alert list.

18. The method of claim 1 additionally comprising the steps of continually monitoring the aggregated data and transmitting any new information related the Hedge Fund.

19. A computer-implemented method for managing risk, the method comprising:

gathering data relevant to a Hedge Fund from multiple sources;

aggregating the data gathered according to risk variables;

receiving an inquiry relating to the Hedge Fund;

associating portions of the aggregated data with the Hedge Fund; and

transmitting the portions of the aggregated data associated with the Hedge Fund.

20. The method of claim 19 additionally comprising the step of enhancing the gathered data.

21. The method of claim 20 additionally comprising the step of enhancing the data relevant to a Hedge Fund.

22. The method of claim 21 wherein enhancing the data comprises scrubbing the data to incorporate changes in the spelling of datum.

23. The method of claim 21 wherein enhancing the data comprises utilization of an index file.

24. The method of claim 19 additionally comprising the step of augmenting the associated portions of aggregated data.

25. The method of claim 24 wherein augmenting the data comprises data mining.

26. The method of claim 19 wherein associating portions of aggregated data comprises Boolean logic.

27. The method of claim 19 wherein associating portions of aggregated data comprises relevance ranking.

28. The method of claim 19 additionally comprising the steps of receiving a source of gathered data and transmitting the source of the associated portions of aggregated data.

29. A computerized system for managing risk, the system comprising:

a computer server accessible with a system access device via a communications network; and

executable software stored on the server and executable on demand, the software operative with the server to cause the system to;

gather data relevant to a Hedge Fund from multiple sources;

aggregate the data gathered according to risk variables;

receive an inquiry relating to the Hedge Fund;

associate portions of the aggregated data with the Hedge Fund; and

transmit the portions of the aggregated data associated with the Hedge Fund.

30. The computerized system of claim 29 wherein the data is gathered via an electronic feed.

31. Computer executable program code residing on a computer-readable medium, the program code comprising instructions for causing the computer to:

gather data related from publicly available sources;

aggregate the data gathered according to risk variables;

receive an inquiry relating to a risk subject;

associate portions of the aggregated data with the risk subject; and

transmit the associated portions of the aggregated data.

32. A computer data signal embodied in a digital data stream comprising data relating to risk management, wherein the computer data signal is generated by a method comprising the steps of:

gathering data from multiple sources;

aggregating the data gathered according to risk variables;

receiving an inquiry relating to a risk subject;

associating portions of the aggregated data with the risk subject; and

transmitting the associated portions of the aggregated data.

33. A method of interacting with a network access device so as to manage risk relating to a risk subject, the method comprising the steps of:

initiating interaction with a risk management server via a communications network;

inputting information descriptive of a Hedge Fund;

transmitting the information descriptive of a Hedge Fund to a risk management clearinghouse server; and

and receiving data associated with risk variables that relate to the Hedge Fund.

34. The method of claim 33 wherein the data received comprises data resultant to data mining.

35. A computer-implemented method for managing risk associated with a Hedge Fund, the method comprising:

gathering data relevant to a Hedge Fund from multiple sources;

aggregating the data gathered according to risk variables;

performing a certification inquiry relating to the Hedge Fund;

associating portions of the aggregated data with certification parameters relating to the Hedge Fund;

receiving an inquiry relating to the certification of the Hedge Fund;

transmitting parameters of the certification inquiry; and

transmitting the portions of the aggregated data associated with the parameters of the certification.

36. The computer-implemented method for managing risk associated claim 35 additionally comprising the step of generating a risk quotient relating to the Hedge Fund.