Brady’s Igloo ETRM SaaS Sought Out by Fund Investors
I have always been intrigued by hedge funds – especially those operating in commodities trading and twenty years ago even wrote a book on the topic for John Wiley along with Peter C. Fusaro. Funds have additional and incremental requirements though when it comes to ETRM that allow them to manage investor accounts. Brady’s Igloo is one of the few solutions out there that caters for this specific need. “While many solutions cater specifically to hedge funds or power management, Igloo stands out as the only system uniquely positioned to effectively address both areas in equal measure,” Brady’s Mohammed Alanizi told me.
Igloo has an allocation process on top of the book structure that traders can’t see (unless permissioned to do so). “This allows the solution to allocate trades to the various investor accounts taking into consideration a lot of additional complexity. Igloo provides innovative methods for allocating across multiple accounts, earning the trust of investors who recommend it to the hedge funds they support. With a deep understanding of both energy contracts and fund allocations, including Futures lot sizes, Igloo sets a new standard in the industry,” he said. It offers an entire suite for funds that have managed accounts including the ability to reallocated and rebalance if and when an investor injects or withdraws capital. It can also easily handle novations. Everything is also audited and tracked adding to the confidence levels, he added.
Today, approximately 25% of Igloo’s customer base are commodities investment fund managers. Mohammed says that 2024 saw a slower pace in the formation of new funds due to higher interest rates. However, volatilities are rising, and Brady starts to see another round of investment in the space. Mohammed expects to see more demand and in particular cites Igloo’s strong reputation in the market driving an increase in inbound inquiries recently. “Not only do investors recommend us but so the large clearers,” he said. “They see some of the reports coming out of the solution and know that Igloo can handle the segment.”
Part of the strength is the reporting. The system sends reports to investors and others that show PnL and VaR allocations etc. “They can look back to how a trade was split and supplies all the information needed to drive that conversation,” he said. “Igloo allows them to really understand what is going on and supplies all of the details behind the numbers they see on the reports as well as that audit trail.”
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