Trade Informatics, a provider of quantitative analytics and systematic trading solutions to institutional asset managers, is pleased to announce the release of the latest addition to its product suite: Peer Analysis.
The buy-side has come to rely on peer reporting to benchmark themselves relative to industry competitors and to satisfy the needs of asset owners demanding performance and accountability. Trade Informatics takes a differentiated approach to peer analysis, offering a product designed to be actionable and consumable. More than a check the box solution, the Trade Informatics Peer Analysis solution is designed to answer the questions “are any of my peers better than me? If yes, how many and why?”
The Peer Analysis product, which has been in beta with selected clients for over a year, is now available to the market. Peer Analysis equips asset managers with key tools to enable them to pinpoint where they lie relative to the world’s largest and most sophisticated money managers.
The analysis draws from a broad universe of trading activity, covers 80 countries, and is 30% comprised of hedge funds. The goal is to apply the Trade Informatics Total Implementation Framework to understand sources of cost and return by region, market cap, order size and momentum among other systematic factors.
Peer groups are designed and constructed to align closely with the characteristics of each client’s individual flow – no more self-selecting into a predetermined peer classification scheme. A peer group is built by cross-sectioning data across common risk factors – for example sector, order size, and momentum.
Trading data analysis should be actionable. Peer analysis using the TI methodology offers insights into a range of indicators including aggressiveness, fill trajectory, order timing, and performance attribution. The broader Trade Informatics product suite is devoted to fulfilling our mission to enable our clients to Maximize Performance and Minimize Cost. Peer Analysis is a welcome addition to this offering.
Joe Hipps, Managing Director at Trade Informatics commented “Recognizing that every firm has different order flow and trading criteria, the TI approach to peer analysis ensures clients will be benchmarked against activity similar to theirs providing a more accurate picture of relative performance.”