When managing funds of funds, two complementary types of risk analysis can be run: a position-based analysis (when you know the composition of the underlying funds) and a return-based analysis (based on historical NAVs of the underlying funds). Quarisma Finance lets you perform both types of analysis.
Indeed, running a position-based risk analysis cannot disclose the whole information on the fund but only gives you a snapshot of the risk at a given point in time. Return-based analysis however is the method of choice in order to capture the fund manager’s behavior and the long-term risk of the fund. This is why we firmly believe that these two methodologies are complementary.