New functionality allows multi-asset class investors to view private asset returns through a public market lens
New York – January 18, 2023 - Venn by Two Sigma (“Venn”), the leading portfolio analytics platform for professional investors, today announced the launch of a robust new feature designed to support private asset analysis. Available to users through its cloud-based platform, Venn now offers an advanced solution for holistically analyzing private and public investments concurrently in multi-asset portfolios.
“As more investors look to diversify their portfolios with private assets, solutions to overcome the data and analytics challenges inherent to the asset class have become a critical need. Venn now offers those investors advanced technology to address that need directly, through private asset analytics capabilities delivered in an intuitive, cloud-based experience,” said Marco Della Torre, CEO of Venn. “We are excited to introduce these new features that can help our clients view private assets through a familiar public lens and more confidently incorporate these assets in their multi-asset portfolio analysis.”
By looking at infrequent and smoothed private asset performance and appropriate public market proxies, Venn’s desmoothing option aims to reduce private market performance lag and mark it to market. In addition, Venn’s existing interpolation functionality aims to increase the frequency of private market returns by utilizing a relevant public market proxy to create an approximated daily return stream for the private asset. This process enables allocators to quickly convert quarterly private asset returns into a daily return series that resembles a marked-to-market public return stream.
Venn’s private asset functionality complements its broad array of tools that provide asset allocators an end-to-end workspace to run factor-based risk analyses and then easily communicate those outputs to their clients and other decision makers.
To learn more about Venn, please visit venn.twosigma.com.
Proxies are for estimation purposes only and have many inherent limitations. The methodology for calculating potential proxies was chosen in our professional judgment, and will not always yield the most accurate available proxy. Our potential proxy suggestions are not a recommendation as to any portfolio, allocation, strategy, or investment nor an offer to purchase or sell any security. We suggest users do their own research to use the public proxy that best fits their own use case. Exposure to risk factors is not a guarantee of increased performance or decreased risk. Past performance does not guarantee future results.
About Venn by Two Sigma
Venn is Two Sigma's portfolio analytics platform used by asset owners, asset managers, and advisors. Venn applies Two Sigma's expertise in research, data science, and technology to modernize the analytics experience for institutional investors, helping them embrace a quantitative approach to multi-asset portfolio risk and investment decision making. The tools available in Venn help investors perform factor-based risk analysis to inform manager due diligence, investment evaluation, and portfolio construction.
Two Sigma Investor Solutions, LP operates Venn – see here for important disclaimers and disclosures. Venn is for institutional investors only. Please see www.venn.twosigma.com for additional information.
About Two Sigma
Two Sigma is a financial sciences company, combining rigorous inquiry, data analysis, and invention to solve the toughest challenges in investment management, insurance, securities, private equity, and venture capital. Founded in 2001 by David Siegel and John Overdeck, Two Sigma employs over 1600 creative minds, and has offices in New York, Houston, Portland, London, Tokyo, Hong Kong and Shanghai. For more Information visit www.twosigma.com.
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.
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