Sigmoid Capital, a bottom-up fundamental equity fund focusing on Asian markets and Chinese ADRs in the U.S., required a comprehensive solution for their complex trading and operations when they launched in June 2023. The fund selected Enfusion due to its seamless front-to-back integration and scalability.
From New York to Asia
Enfusion not only brought global expertise and technical capabilities to the table but also provided powerful functionality for investment swaps and multi-currency transactions. Sigmoid uses the PMS, OEMS, accounting, mobile trading, and market data functionality. The added benefit of local support in Asia and New York further solidified their choice.
Enfusion serves as a comprehensive tool, offering support from trade execution to operational and accounting– it enhances the efficiency of our workflows. For everything Enfusion brings to the table, it's a wonderful solution from a cost-benefit perspective. - Paul Guggenheimer, CFO, Sigmoid Capital”
Ideal support for swaps and FX
Sigmoid trades directly on local exchanges and uses swaps for short selling or to gain exposure where direct access is limited. For market transactions in China, Taiwan, or Korea, they secure cash through spot trades, settling equity trades with the acquired cash, and promptly hedging any resulting FX exposure to manage risk.
When trading directly, Sigmoid uses FX spots and forwards to hedge any currency exposure. They also generate interest on cash balances and swap fee rebates that are booked daily.
Enfusion seamlessly connects with Sigmoid’s two prime brokers, sending data files that include portfolio cash forwards and FX exposure amounts, which the prime brokers use to generate trade recommendations based on this data. After further verification using their own spreadsheet, Sigmoid’s traders execute the orders on the prime brokers' platforms. Enfusion then automates the transfer of transaction data via FIX protocol, eliminating manual booking.
Month-end streamlining
Guggenheimer emphasizes how Enfusion streamlines the entire process, offering a unified platform for connecting with executing brokers.
I'm very impressed with the connectivity and the platform, the ability to transact, the ease. Since we started using Enfusion, it's been working phenomenally well.”
Enfusion's accounting module is crucial in Sigmoid's daily operations by helping Guggenheimer easily monitor P&L, cash balances, corporate actions, interest, and rebates. This ease of use allows for seamless generation of income statements and balance sheets, enhancing Guggenheimer’s ability to assess P&L and provide timely estimates to investors. At month-end, Enfusion’s integrated data expedites reconciling positions, balances, and P&L with Sigmoid’s administrator.
Powered for trades
Wendy Chen, Sigmoid’s Founder and CIO, relies on Enfusion's OEMS for routing orders and overseeing the integrated PMS, ensuring effective hedging of FX exposure and monitoring daily P&L. Guggenheimer uses the OEMS to check for any trades that might not have received confirmation from counterparties, which is a rare occurrence.
The platform's pre-trade compliance checks also support adherence to trading rules and regulations, including sanctions lists and risk prevention measures.
I would highlight Enfusion as a phenomenal one-stop shop for global multi-asset trading, operations, accounting, and reporting—all the complex needs of a fund like us focused on Asian markets. The team has delivered a robust platform with great service at an affordable price.”
Hundreds of thousands of dollars saved
Enfusion has met and exceeded Sigmoid Capital's expectations by providing a comprehensive solution that streamlines its operations, increases efficiency, and enhances its ability to manage complex multi-asset trading in Asian markets.
We anticipate hundreds of thousands of dollars in savings versus alternatives that don't offer the same robust, integrated solution. More importantly, we save huge amounts of time by automating tasks like compiling data, reconciling, monitoring limits, and managing workflows across multiple geographies and counterparties. The efficiency gains are invaluable.”