Martingale Risk
"It's not that I am smart, it's just that I stay with problems
longer." Albert Einstein
longer." Albert Einstein
Martingale Risk Ltd delivers rigorous quantitative solutions to investment
firms while managing the trade-off between mathematical sophistication
and systems flexibility. Download here our
We design, develop and implement models and tools for portfolio allocation,
derivatives pricing and risk management following a strict code of business
which relies on two core principles:
Independence: Martingale Risk is a team of independent consultants.
Our company is not owned by or linked to any private or public financial
institution. We do not have any business connection with banks or financial
intermediaries and, as such, we do not have any incentive in suggesting our
clients to buy or sell whatever type of product. This puts us in a better
position as advisors compared to the quant/structuring departments of the
investment
banks.
Scientific approach: “Scientific” is, first of all, the application of quantitative
techniques to solve pricing and risk management problems in a pragmatic
and efficient way. We believe that any good pricing or risk management
system, beside being theoretically sound, should always be delivered in a
well engineered IT framework. “Scientific” therefore is also the process we
follow to build the software that implements our solutions. Our software is
test-driven, developed in an agile iterative way and follows the most
recommended design patterns in terms of market standards and regulatory
requirements. “Scientific” is, above all, the way we closely interact with our
clients to understand and fulfill their business needs. No technology can
replace a constructive dialogue and a positive synergy with the final users of
our work.
firms while managing the trade-off between mathematical sophistication
and systems flexibility. Download here our
We design, develop and implement models and tools for portfolio allocation,
derivatives pricing and risk management following a strict code of business
which relies on two core principles:
Independence: Martingale Risk is a team of independent consultants.
Our company is not owned by or linked to any private or public financial
institution. We do not have any business connection with banks or financial
intermediaries and, as such, we do not have any incentive in suggesting our
clients to buy or sell whatever type of product. This puts us in a better
position as advisors compared to the quant/structuring departments of the
investment
banks.
Scientific approach: “Scientific” is, first of all, the application of quantitative
techniques to solve pricing and risk management problems in a pragmatic
and efficient way. We believe that any good pricing or risk management
system, beside being theoretically sound, should always be delivered in a
well engineered IT framework. “Scientific” therefore is also the process we
follow to build the software that implements our solutions. Our software is
test-driven, developed in an agile iterative way and follows the most
recommended design patterns in terms of market standards and regulatory
requirements. “Scientific” is, above all, the way we closely interact with our
clients to understand and fulfill their business needs. No technology can
replace a constructive dialogue and a positive synergy with the final users of
our work.
Our Code of Conduct At Martingale Risk we have a precise Code of Conduct in the way we approach our clients. We always make sure they fully understand the risks of the investments they undertake and they are ready to eventually cope with the worst case scenario. We also prevent them from taking non- rewarded risks. Rule 1 – We like to be optimistic about our investment outcomes but what happens if the worst scenario happens? We always make sure our clients bear only those type of risks they fully understand. We do that by calculating the portfolio return under the worst case scenario, by informing our clients and by checking if they are eventually prepared to cope with that. Rule 2 – We want our clients to be rewarded for the risk they bear. There are many forms of risk and, fortunately, not all of them are useful to bear. For example, if you hold just one single stock, you are exposed to the idiosyncratic specific risk for that stock. However, if you create a portfolio of different stocks, you will reduce the uncertainty of your investment still maintaining the same level of expected return of the single stock. |
| Registered Office: 6-7 Ludgate Square, London EC4M 7AS UK Martingale Risk Ltd © 2007 |
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