DENVER--(BUSINESS WIRE)--Fabric RQ, a startup founded by veteran risk manager Richard Bookstaber, today announced it has begun signing up advisors to test drive a new kind of risk management application that employs the same factor-based approach used by the world’s largest banks, asset managers and hedge funds. The firm will source factor analytics from MSCI, the world leader in factor analytics.
“I know firsthand the difference between the risk management tools available to Wall Street and what’s been on offer to date for financial advisors,” said Bookstaber, who has spent his career in chief risk officer roles at global investment banks, two of the world’s largest hedge funds, and a large public pension fund. “Advisors have been underserved. I find this concerning on two levels. First, advisors are on the front line, dealing with the individuals who are the ultimate asset owners. And second, getting risk right is critical for their clients' long-term goals.”
Unlike most off-the-shelf risk management platforms that rely on historical asset class correlations—which are intrinsically backward looking and have been prone to break down in recent years—Fabric’s technology is based on factors, which Fabric Co-Founder and CEO Govinda Quish calls the fundamental building blocks of risk: “Their beauty is in their ability to capture complex core relationships while distilling that complexity into understandable investment insights.” The Fabric platform, powered by MSCI's factor model, extends to analyze exposure to ESG, most notably climate change.
Fabric’s application is geared toward advisors who want to differentiate themselves and grow their practice by engaging in a discussion of risk with both existing clients and prospects.
“With the significant run-up in equities over the last decade-plus, today’s investors worry about protecting their hard-won market gains and are laser focused on risk,” said Fabric Co-Founder and COO Jeff Roush, a 30-year veteran of the wealth management industry. “Advisors who understand and can respond to their concerns in a robust and thoughtful way will be best positioned to compete going forward.”
Fabric is inviting advisors who want to try out its application, which goes live this fall, to visit its website, www.fabricrisk.com.
About Fabric RQ
Founded by Wall Street veteran Rick Bookstaber, Fabric RQ provides institutional-quality risk management technology to individual investors through their financial advisors. Fabric employs agent-based risk models powered by MSCI's industry-leading factor framework to map out forward-looking risk. By recognizing the narrative nature of risk and distilling complexity into understandable investment insight, Fabric facilitates the deep, differentiated risk conversations that build trust and confidence for the advisor’s clients and prospects. www.fabricrisk.com