Fund Structuring

Fund Structuring

As a major global player in the management of portfolios of hedge funds for institutional and private investors, LumX was an early and vigorous proponent of greater transparency in the hedge fund industry. A key LumX initiative in this area was the creation, in 2009, of the LumMap managed account platform.

Our platform has been designed to meet the highest fiduciary standards of governance, with fully independent valuations, tight control over mandate guidelines and limits, and direct verification of asset custody and ownership. It is highly modular and has been built with the needs of fund managers in mind. The managed account platform is flexible enough to allow fund managers to fully express their talents and strategies, with no undue constraints imposed on instruments used or liquidity terms, within a framework of rigorous independent operational controls. Fund managers can trade through a selection of leading global prime brokers with which the platform has established relationships, and can request the addition of other preferred counterparties as needed.

A unique feature of the LumMap managed account platform is its full integration with LumRisk, one of the most advanced risk platforms in the industry. Based on daily position-level transparency received from the platform, after full reconciliation of all trades and positions with the fund administrator, LumRisk provides independent mandate compliance monitoring and extensive risk exposure analysis, stress testing and reporting capabilities. Fund managers and authorised investors can perform detailed on-the-fly risk analysis of the fund’s holdings, with full drill-down capabilities to individual underlying positions, using a powerful and intuitive user interface.

The platform’s legal framework ensures no contagion risk or interdependence among the funds on the platform, each one being set up as a fully separate legal entity.

For any enquiries about the services offered and capabilities of the managed account platform, please contact us here