Two Sigma announced it is launching Venn, a cloud-based investment analysis software platform. Venn was initially introduced on a limited, invite-only basis, and is now available to institutional investors and wealth managers among others. Users of Venn today represent more than 200 institutions across pensions, endowments, insurers, family offices, funds of funds and RIAs, among others, that represent more than $5 trillion in combined AuM.
For many institutional investors, the investment process today remains highly qualitative, with a reliance on spreadsheets or other inefficient tools that are slow to provide more complex analysis and can require hours of manual effort to build and maintain. These barriers to data-driven analysis can prevent investment teams from responding to management needs in a timely manner and increase the likelihood of human error.
“Two Sigma has spent nearly two decades bringing a scientific approach to the investment process,” said Carter Lyons in a statement. Lyons leads Two Sigma’s investment products and solutions business. He added: “We think we can take that same approach and help investors analyze their entire portfolio, not just the capital we help to manage.”
Venn applies Two Sigma’s expertise in technology and investment analysis to help investors use data to answer critical questions they face each day, and is designed to help investors gain a better understanding of investment risks and the role these risks play in meeting their investment objectives.
This means that as investors seek to protect and grow the assets of leading research institutions, pensioners or even their advisory clients, they can gain confidence that the risks they’re taking are transparent and deliberate.
“Venn empowers investors to easily organize their data and collaborate more efficiently through a customizable cloud-based investment library, feeding a range of powerful analyses intended to highlight the dominant risk exposures across investments and sensitivity to drawdown scenarios,” according to a company statement.