Tremont Advisers hired RiskMetrics Group to provide web-based hedge fund risk reporting for Tremonts hedge funds-of-funds investors and advisory clients, according to a news release from Tremont. The companies plan to jointly develop the risk reporting system and best-practices reporting standards for hedge funds and hedge funds of funds. Tremont will help RiskMetrics design forms for specific hedge fund strategies, said Cynthia Nicoll, director of business development for Tremont. Once the forms have been designed enabling RiskMetrics to generate risk reports at both the individual manager and aggregate portfolio levels, Tremont will subscribe to the service. RiskMetrics will be able to offer the jointly developed risk reporting product to other subscribers.
Hedge fund managers in which Tremont clients invest would allow RiskMetrics to see their individual positions and use that information to generate risk reports for Tremonts investors. In return, RiskMetrics would safeguard the hedge fund managers position-specific information.