SAN FRANCISCO, Feb. 18, 2016 /PRNewswire/ -- At a time of increasing market volatility, Emotomy announces the launch of new state-of-the-art "asset-class overlay algorithms" -- sophisticated risk management techniques previously available only to large hedge funds and pension funds. Now, for the first time, overlay tools will be easily available to RIAs and CIOs to help them address extreme market swings and uncertainties.
Overlay trading signals have been used for years by managers of large institutional portfolios to control the risk of investing in specific asset classes and securities. During periods of high volatility, an overlay can "turn on" to control risk exposures, temporarily modifying the investment strategy to apply the required risk adjustment. This "on/off" behavior can be fully automated, ensuring the continuous monitoring of investor accounts.
Emotomy, a top B2B online investment analytics, trade execution, risk management, and reporting platform for independent RIAs, now offers a point-and-click overlay construction function that can be applied to individual securities or to portfolios of securities. Investment advisors using Emotomy can now review and select existing overlays for their client portfolios, as well as design and test their own proprietary overlay strategies. Risk management tools once only available to institutions investing billions of dollars are now available to any independent investment advisor with the click of the mouse.
In contrast to many direct-to-consumer robo-advisors, Emotomy is tailored for registered investment advisors who provide deep expertise and a "safe set of hands" overseeing client portfolios. The new overlay technology adds to an already-rich set of Emotomy tools to manage portfolio risk at a time of growing market uncertainty.
According to Emotomy co-founder and CEO Patrick Beaudan, "Today, overlays are of keen interest to investment professionals with exposure to fixed income products, including high yield bonds and bank loans. Our tools allow for overlay application to other asset classes as well, and they should aid investment advisors in managing exposure to certain asset classes while containing risk."
Robo-advisors aim to automate some or all of the functions of financial advisors. Emotomy provides a private label, turn-key solution to design, market, and manage client portfolios, and it has been steadily adding tools that offer sophisticated functionality and convenience for advisors and their clients. The platform already serves RIAs, broker-dealers and family offices that represent several billion dollars in assets and directly manages and trades thousands of client portfolios for these clients.
Emotomy is an institutional-quality, state-of-the-art robo platform offering independent financial advisors an intuitive and highly customizable solution to help serve clients seamlessly and efficiently. It was founded by financial industry veterans Dr. Patrick Beaudan, formerly of Lehman Brothers and McKinsey & Co., and Mari Kawawa, who previously worked at Invesco, Banc of America Securities, and PaineWebber Securities.