Coronavirus has taken the world by surprise, leaving us concerned on multiple levels, starting first and foremost with the health of those affected. Gauging its economic and market impact is also an important concern for investors, and Venn might be able to help. We want to highlight 3 ways in which Venn can help you assess the impact of the coronavirus on your investments and/or portfolio.*
1 . Venncast
Understanding timely portfolio performance can be challenging, as allocators often receive fund performance on a delayed basis, notably for non-public funds that don’t report daily NAVs. Venncast is a tool that provides users with up-to-date portfolio and investment performance estimates before actual returns are available. Given that the coronavirus has been impacting markets for over a month, Venncast can give you an idea of how your portfolio might be holding up.
2. Scenario Analysis
Scenario Analysis is a tool we developed to enhance your team’s risk management function that helps you understand how certain market shocks are estimated to impact your organization’s portfolios and investments. You can use Scenario Analysis to shock certain markets that you believe might be impacted by the coronavirus in the future. See how your portfolio is estimated to react to those shocks.
3. Drawdown Analysis
Drawdown Analysis can help clients understand which historical periods, if repeated today, could create a drawdown in a portfolio or investment, given the portfolio’s or investment’s current factor exposures as determined on Venn. See if your portfolio, given its factor exposures today, could have been impacted by epidemics historically, like the 2002 SARS outbreak.
* Portfolio analysis is available on Venn Pro only
This article is not an endorsement by Two Sigma Investor Solutions, LP or any of its affiliates (collectively, “Two Sigma”) of the topics discussed. The views expressed above reflect those of the authors and are not necessarily the views of Two Sigma. This article (i) is only for informational and educational purposes, (ii) is not intended to provide, and should not be relied upon, for investment, accounting, legal or tax advice, and (iii) is not a recommendation as to any portfolio, allocation, strategy or investment. This article is not an offer to sell or the solicitation of an offer to buy any securities or other instruments. This article is current as of the date of issuance (or any earlier date as referenced herein) and is subject to change without notice. The analytics or other services available on Venn change frequently and the content of this article should be expected to become outdated and less accurate over time. Two Sigma has no obligation to update the article nor does Two Sigma make any express or implied warranties or representations as to its completeness or accuracy. This material uses some trademarks owned by entities other than Two Sigma purely for identification and comment as fair nominative use. That use does not imply any association with or endorsement of the other company by Two Sigma, or vice versa. Click here for other important disclaimers and disclosures.