Clearwater Analytics Unifies Factor Risk Across Portfolio Management and Risk Oversight

Clearwater Analytics announced new factor risk capabilities for hedge funds and asset managers, helping investment teams make faster decisions with greater visibility into portfolio risk.

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For many firms, factor risk remains disconnected from the investment process. Portfolio managers often wait hours or until the next day to understand the risk implications of a trade, while Chief Investment Officers (CIOs) and risk teams depend on separate systems, service requests, and static reports to answer basic portfolio risk questions.

Clearwater’s latest launch addresses both challenges with two new products: Factor Risk Lens for portfolio managers and traders, and Factor Analytics for CIOs and risk leaders.

“Risk should be part of the investment decision, not something that arrives after the fact,” said Kirat Singh, President, Risk and Alternative Assets at Clearwater Analytics. “Portfolio managers need to understand how a trade changes portfolio exposures before they execute it. CIOs and CROs need immediate answers to questions about portfolio risk. We’re bringing both groups onto the same foundation so they can make decisions with confidence.”

Factor Risk Lens brings factor risk analysis directly into Enfusion by Clearwater. Portfolio managers can model potential trades, evaluate their impact on portfolio exposures, and understand the factors driving performance, all without managing multiple vendors or introducing integration friction. Having everything on one platform also reduces total cost of ownership.

The solution includes:

• Pre-trade factor risk analysis, allowing portfolio managers to evaluate the risk implications of portfolio changes before execution.
• Post-trade factor-based attribution, performance decomposition, and stress testing, which will provide insight into the factors that contributed to portfolio performance and how exposures changed over time.

For asset managers, Factor Analytics provides CIOs and risk teams with a continuously updated view of portfolio risk through a self-service interface built directly into Clearwater. Factor Analytics draws on the same reconciled data that underpins Clearwater’s broader platform, giving teams a reliable foundation for every risk decision.

Rather than relying on static reports or vendor-supported workflows, users can analyze factor exposures, run scenario analysis, and investigate portfolio risks on demand. Tasks that previously required service requests or manual data aggregation can now be completed in minutes.

Both offerings are built on Clearwater’s investment data foundation, allowing portfolio managers, risk teams, and executives to work from the same underlying information. Clients can use proprietary factor models, third-party models, or Clearwater’s GR8 Equity Factor Model.

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