Capital Fund Management is a global quantitative and systematic asset manager that applies a scientific approach in developing alternative investment strategies. Its methodology relies on statistically robust analysis of terabytes of financial data for asset allocation, trading decisions, and automated order execution. CFM is a pioneer in the field of quantitative trading applied to capital markets across the globe.
Portfolio construction, together with return generation and execution, is a vital aspect of building a sound investment program. It requires robust data and developed statistical methods which CFM has honed over many years.
Its IT/Data infrastructure has been specifically designed for quasi-real-time risk evaluation. So while the trading patterns are slower in the Alternative Beta strategy, regular updates of positions and market condition indicators are important in building a reliable risk control infrastructure.
While certain risk monitoring tools are embedded in the trading systems and maintained by the front office teams, CFM also maintains a dedicated, independent risk team, whose mandate is to independently validate financial risk estimates and to independently impose operational risk limits.
CFM's data team is responsible for collecting, cleaning, manipulating, and managing terabytes of incoming data every day. CFM currently monitors approximately one million instruments.