As 2022 comes to a close, we hope that this note finds you well and you are beginning to wind down from another busy year. Global macro events, market volatility, and inflation were top of mind for all our clients this year. At Venn by Two Sigma, we were fortunate to continue investing in our platform, grow the Venn team, and deepen relationships with our community. While there were many milestones, here are five things that excited us the most in 2022:
1. We Deepened Our Quantitative Analytic Capabilities
2022 was filled with quantitative platform enhancements based on insightful feedback from our clients, including:
- Forecasting enhancements: select and adjust custom periods to use when calculating the factor exposures, which are a key part of forecasts.
- Private asset enhancements: you can now select any custom public proxy when interpolating illiquid, quarterly return streams on Venn.
- Lots of new, essential metrics: autocorrelation, rolling autocorrelation, downside correlation, rolling correlations, rolling beta to benchmark, and batting average.
- Residual attribution for portfolios: get insight into what is driving the idiosyncratic risk and return in your portfolio.
2. We Invested in Platform Customization and Reporting
One of the most commonly requested workflows we kept hearing from clients was output customization and reporting. This year, we:
- Released Report Lab (for select clients). Report Lab is a new workspace that empowers users to create customized reports for internal and external presentations. With it, we also released the Document Archive, which stores all final exports from Report Lab. Building proposals and slide decks has never been more streamlined on Venn.
- A new permissions-based framework allows certain users to only access and edit select parts of the platform. For our wealth clients, this means that advisors may only need to have access to client reporting while investment researchers may need more detailed access to the forecasting frameworks on Venn.
- Throughout the year, we also held a limited beta test of Studio, which empowers users with more flexible and customizable on-screen analysis. Look out for continued investment in this area.
3. We Built Partnerships That Brought New Data Sets for Clients
- Our partnership with eVestment went live early in 2022, giving clients a new source for investment manager data spanning public and private markets.
- Our strategic alliance with Coin Metrics, a leading institutional crypto financial intelligence provider, brought digital assets return data to Venn.
- To get the most out of these new data sets, be sure to check out our recently released advanced search and filtering capabilities within our Data Library. This new functionality helps to both better track existing investments and source new investment ideas.
4. We Added New Content Series
- We launched a Monthly Digital Asset Digest to give insights into the state of capital allocation in crypto.
- Our new Pillar Series dove into Venn’s four factor principles: Holistic, Parsimonious, Orthogonal, Actionable.
5. We Stayed Connected With Our Clients, Virtually and In-Person
Last but not least, we were thrilled to meet many of you in person, some for the first time. We also continued finding opportunities for virtual events that strengthened the Venn community. Highlights included:
- We covered several timely topics on webinars this year, including: navigating market volatility with Addepar, discussing how asset allocators can evaluate crypto with Coinbase, examining hedge fund market trends with HFRI, a discussion on risk with eVestment and, as always, our ongoing live demo series.
- In October, we welcomed clients, partners, and prospects into our offices as we hosted our first ever in-person Venn social event.
- In November, we officially launched our Client Advisory Board, consisting of a group of engaged clients who will regularly meet with Venn leadership to share insights and feedback.
Looking ahead, we are excited to continue innovating, especially in the areas of reporting, private investments capabilities and functionality to support our growing wealth management client base. Also be on the lookout for even more opportunities to connect with us live or virtually.
We hope you have a safe, restful and happy holiday season, and best wishes for the new year!
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. Any statements regarding planned or future development efforts for our existing or new products or services are not intended to be a promise or guarantee of future availability of products, services, or features. Such statements merely reflect our current plans. They are not intended to indicate when or how particular features will be offered or at what price. These planned or future development efforts may change without notice. 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. See the end of the document for other important disclaimers and disclosures. Click here for other important disclaimers and disclosures.
This article may include discussion of investing in virtual currencies. You should be aware that virtual currencies can have unique characteristics from other securities, securities transactions and financial transactions. Virtual currencies prices may be volatile, they may be difficult to price and their liquidity may be dispersed. Virtual currencies may be subject to certain cybersecurity and technology risks. Various intermediaries in the virtual currency markets may be unregulated, and the general regulatory landscape for virtual currencies is uncertain. The identity of virtual currency market participants may be opaque, which may increase the risk of market manipulation and fraud. Fees involved in trading virtual currencies may vary.