Case Study: Performance Thinking & Technologies achieves optimized hedge-fund risk and portfolio allocation with Palisade (@RISK & RISKOptimizer)

Performance Thinking & Technologies - Customer Case Study

Performance Thinking & Technologies, an asset‑management consulting firm, needed a quantitative way to optimize hedge fund portfolios and balance return with short‑term risk. Seth Berlin at Performance Thinking & Technologies used Palisade’s @RISK and RISKOptimizer to build a simulation‑based model for hedge fund management that could evaluate many allocation scenarios across long and short positions.

Using Palisade’s tools in a structured five‑step process, Berlin modeled uncertain inputs, defined decision variables and constraints, and ran simulations/optimizations to find the optimal risk/return mix. Palisade’s @RISK and RISKOptimizer produced an optimal short/long allocation (including an optimal short mix for the following week), showed how changing allocations would affect profitability, and let managers test millions of portfolio combinations to move from qualitative judgment to measurable, optimized decisions.

Performance Thinking & Technologies

Seth Berlin

Principal Strategist, Performance Thinking & Technologies