Fortech and Core Capital Build New AI-Fueled Portfolio Risk Management Solutions: AIPERION
13 April 202013 June 2019 | News
- New generation of AI-driven portfolio risk management solutions now available to institutions and family investment offices, through AIPERION;
- AIPERION is a joint venture built by the partners of Chicago-based Core Capital Management – a provider of risk modeling solutions – and Fortech – the Romanian owned IT services provider, repeatedly recognized in Deloitte Technology Fast 50 rankings and EY’s Entrepreneur of the Year Program;
Cluj-Napoca and Chicago – June 13, 2019. Fortech and Core Capital Management announce the launch of their global joint venture AIPERION – a consulting, technology and scientific research firm specialized in risk management solutions. The organization elevates a decades-long relationship, broadening combined service capabilities to give investors visibility and control over their portfolios, across a broad range of asset classes.
By combining Fortech’s tech expertise across its force of 700+ engineers with Core Capital’s risk modeling and consultancy track record (previously housed within CoreLabs), the collaboration marks a significant step in setting a new standard in the way both businesses address the market.
Extended Value Proposition
Amid a highly dynamic market, disrupted continuously by the critical role of technology, investors across the world are looking for new models that allow them to uncover hidden risks and drivers of return as a base for optimizing their multi-asset portfolio construction and management. In response, AIPERION features a three-fold commitment, providing:
- transformation and risk consultancy with a focus on advanced risk modeling, uncertainty management and the implementation of a sophisticated risk culture in investment organizations;
- industry specific digital solutions that harness the power of technology to help investors run new risk models;
- R&D accompanied by fast prototyping and scaling capacity for any missing tools in the client’s tech ecosystem;
Designed to provide clients with unprecedented objectivity and clarity for investment decisions, AIPERION’s solutions suite is geared towards pensions, endowments, foundations, insurance companies, investment advisory firms, as well as non-institutional investors.
Clients can expect a more accurate assessment of return expectations; a more robust portfolio, represented in a single model, independent of its underlying mix of investment styles; as well as an optimized risk spending.
A New Risk Management Approach
Stemming from an unconventional risk paradigm, called ” financial de-engineering”, AIPERION helps its clients elevate the impact of their risk practice and chart their path from risk measurement to risk management.
Through a consultative approach, AIPERION works alongside the client to implement the critical pillars of a robust risk management framework. The solution relies on a unique, advanced portfolio modeling system, a scientific risk-driven investment model, processes needed to bring the risk function into front-office and ultimately, the corresponding technology suite. Together they look at risk through multidimensional lenses managing thus the diversification and construction of their portfolio in full awareness of potential vulnerabilities.
“Everything starts with a better understanding of risks. Not only is the sensitivity of portfolios not constant, but it is non-linear and discontinuous. This means that the same portfolio responds differently at different levels of risk. Having gone through multiple investing cycles ourselves, our purpose is to empower CIOs and risk managers through knowledge, processes and technology so that they are better prepared for any market conditions than ever before” – commented Dr. Sorina Zahan, Managing Partner and CIO at Core Capital, AIPERION’S Managing Partner and CEO. She goes on to say: “Integrating Fortech’s tech expertise greatly enhances our capability to develop and integrate our proprietary customizable risk management platform for advanced modeling, which lies at the core of our service.”
Technology at the Core of AIPERION
Technology is the enabler for a timely, cost-effective delivery of the risk management function.
Marcel Cremene, a Senior Scientist at Core Capital and AIPERION Partner, observed that “AIPERION is building a proprietary risk platform and workspace that links all data, people, tools and activities needed to manage risk in one single operating system. Thus, the client gains a bird-eye view across all their assets and complete transparency around its risk function.”
The platform integrates AI and its family of technologies, including neural network algorithms to process and gain analytical insight from a large variety (but not amount) of information. As opposed to most machine learning solutions AIPERION’s technology works with small data, an essential feature of the framework. This substantially improves the portability of analytical risk capabilities across multi-asset classes and supports their integration in a single, objective and intuitive model. Hence, risk managers can make informed investment decisions.
This is where Fortech’s breadth of IT expertise has a particular impact. As part of its founding legacy, Fortech’s inspiring mission is to drive the technology culture at AIPERION while working closely with the scientific research team and risk management consultants to build the technology platform needed to run the advanced risk modelling. The company develops the platform and supports its integration with other existing systems at the client or develops additional on-request custom modules. Hence, risk managers can focus on managing portfolios rather than managing technology and tools, data and processing challenges.
“We are excited to play the role of AIPERION’s tech arm. Our partnership structure gives us the edge to understand specific client needs and develop technology-enabled risk management or broader financial solutions, that help investors accelerate the transformations they need across their portfolios.” – said Calin Vaduva, Fortech’s CEO and AIPERION Partner. “Beyond our mission with AIPERION, we can extend our support in developing proprietary stand-alone software for any missing component in the client’s tech ecosystem.”
Unified Delivery Model
Fortech and Core Capital join forces under one brand and legal entity – AIPERION – to build a comprehensive offering for the risk management industry. The newly formed group leverages robust technical competence, asset management experience and process and operates a global team to implement timely and accurate solutions.
Fortech is one of Romania’s largest software development companies, repeatedly recognized in Deloitte Technology Fast 50 rankings and also in EY’s Entrepreneur of the Year Program, with a team of over 700 engineers, 15 years in the market and a portfolio of 200 clients.
Core Capital, through its scientific research arm CoreLabs and its decades of academic research and risk modeling practice, has provided risk research and advanced modeling expertise for clients whose portfolios exceed in aggregate $100bn. Core Labs and its intellectual property has been spun out into AIPERION.
Through AIPERION, Core Capital and Fortech have jointly developed a solution suite for the risk management sector, now distributed in a unified service model in support of investors. Outside of this partnership, Fortech and Core Capital remain separate entities and will continue to provide their specific core capabilities to their respective clients.