Hedge Fund Risk Management

• US 20130073482A1
• Filed: 11/06/2012
• Published: 03/21/2013
• Est. Priority Date: 03/20/2001
• Status: Abandoned Application

• Current Assignee: Regulatory DataCorp, Inc. (Moody's Corporation)
• Original Assignee: Goldman Sachs & Company (Goldman Sachs Group Incorporated)
• Inventors: Lawrence, David
• Application Number:
  US13/669,635
• Publication Number:
  US 20130073482A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• 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

1-36. -36. (canceled)

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

gathering data relevant to a Hedge Fund from data sources;

aggregating, by a computer, the gathered data according to risk variables;

augmenting, by the computer, the aggregated data by determining additional data elements based on data elements of the aggregated data;

receiving, via an interface of the computer, an inquiry relating to the Hedge Fund, wherein the inquiry specifies a certification level;

generating a due diligence report by associating portions of the augmented aggregated data with the Hedge Fund, wherein the due diligence report satisfies the specified certification level;

continually monitoring, by the computer, the data sources to identify new data relevant to the Hedge Fund; and

updating, by the computer, the due diligence report based on the new data.

38. The method of claim 37 further comprising transmitting, by the computer, the due diligence report and the associated portions of the augmented aggregated data to a destination specified by a requesting party.

39. The method of claim 38 wherein transmitting the due diligence report and the associated portions of the augmented aggregated data is conditioned upon a contractual obligation that the requesting party will not use the due diligence report or the associated portions of the augmented aggregated data for any purpose covered by the Fair Credit Reporting Act.

40. The method of claim 38 wherein the due diligence report and the associated portions of the augmented aggregated data are transmitted exclusively to an institution, such that neither an owner of the computer nor an operator of the computer will have customers or consumers as defined in the Gramm Leach Bliley Act.

41. The method of claim 38 further comprising transmitting an identity of at least one of the data sources.

42. The method of claim 37 wherein the gathered data is gathered exclusively from publicly available sources.

43. The method of claim 37 wherein the inquiry relates to Hedge Fund window dressing.

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

a computer processor; and

a memory containing executable software that, when executed by the computer processor, directs the computer processor to;

gather data relevant to a Hedge Fund from data sources;

aggregate the gathered data according to risk variables;

augment the aggregated data by determining additional data elements based on data elements of the aggregated data;

receive an inquiry relating to the Hedge Fund;

generate a due diligence report based on portions of the augmented aggregated data associated with the Hedge Fund, wherein the due diligence report satisfies a specified certification level;

continually monitor the data sources to identify new data related to the Hedge Fund; and

update the due diligence report based on the new data.

45. The system of claim 44 wherein the executable software further directs the computer processor to generate a risk quotient associated with the Hedge Fund and include the risk quotient in the due diligence report.

46. The system of claim 44 wherein the executable software further directs the computer processor to generate information indicating a reputation of at least one of the data sources.

47. The system of claim 44 wherein the executable software further directs the computer processor to transmit the due diligence report and the associated portions of the augmented aggregated data to a requesting party.

48. The system of claim 47 wherein to transmit the due diligence report and the associated portions of the augmented aggregated data includes to verify existence of a contractual obligation that the requesting party will not use the due diligence report or the data for any purpose covered by the Fair Credit Reporting Act.

49. The system of claim 44 wherein the executable software further directs the computer processor to transmit an identity of at least one of the data sources of the associated portions of the augmented aggregated data.

50. The system of claim 44 wherein the inquiry relates to Hedge Fund portfolio pumping.

51. A non-transitory computer-readable medium comprising computer-executable instructions that, when executed by at least one risk management computer, direct the at least one risk management computer to:

gather data relevant to a Hedge Fund from at least one data source;

aggregate the gathered data according to risk variables;

augment the aggregated data by determining additional data elements based on data elements of the aggregated data;

receive an inquiry relating to the Hedge Fund;

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

generate a due diligence report, based on the associated portions of the augmented aggregated data, that satisfies at least one of a plurality of certification levels;

continually monitor the at least one data source to identify new data relevant to the Hedge Fund; and

update the due diligence report based on the new data.

52. The computer-readable medium of claim 51 wherein the at least one data source is at least two data sources and each of the at least two data sources is a government data source.

53. The computer-readable medium of claim 51 wherein the instructions further direct the at least one risk management computer to generate a suggested action based on the due diligence report.

54. The computer-readable medium of claim 51 wherein:

to augment the aggregated data further includes to scrub the aggregated data; and

to associate portions of the augmented aggregated data with the Hedge Fund includes to perform relevance ranking.

55. The computer-readable medium of claim 51 wherein the due diligence report and the associated portions of the augmented aggregated data are transmitted exclusively to an institution such that neither an owner of the at least one risk management computer or an operator of the at least one risk management computer will have customers or consumers as defined in the Gramm Leach Bliley Act.

56. The computer-readable medium of claim 51 wherein the instructions further direct the at least one risk management computer to transmit the due diligence report and an identity of the at least one data source to a requesting party.