Case Study: a multi-strategy hedge fund achieves substantial cost savings with Landytech Sesame

Landytech Helps Multi-strategy Hedge Fund Achieve Substantial Cost Savings

Landytech worked with a UK-based multi-strategy hedge fund launched in 2020 that focused on credit strategies, including convertible arbitrage, long convertible bonds, short equity positions, SPACs and select long common stock holdings. As a start-up with about $50m in assets under management, the fund needed sophisticated, granular risk analysis and ongoing expert support, but wanted to avoid the cost of building an in-house risk and operations function.

Using Landytech’s Sesame platform and managed service, Landytech built customised risk measures, reports and governance processes covering VaR sensitivity, Greeks, concentration risk, stress testing and portfolio exposures, while continuously reconciling data with the custodian. Landytech also adapted the setup during Covid-19 with dedicated crisis scenarios and expanded coverage as the fund’s instruments evolved. The result was substantial cost savings versus hiring an equivalent in-house risk resource, plus support that helped the fund navigate market dislocations and achieve a 10% return in its first year.