Bear Stearns is launching BearXplorer, four securities-based portfolio tools designed to manage risk and optimize portfolio performance.
Designed with chief investment officers, portfolio managers, risk managers and traders in mind, BearXplorer covers over 14,000 securities in 23 countries.
The tools screen portfolios for exposure to over 60 stock market drivers, such as commodity prices, interest rates, exchange rates and economic indicators.
Kay Booth, president of BearXplorer, said that the tools can help investors adjust their portfolios ahead of big market events or as trends develop. For example, they provide portfolio managers with an instant snapshot of how their investments stack up against the latest market-moving news, like an unexpected drop in jobless claims or a sudden run-up in gold.
The BearXplorer customizable tools include AlphaXplorer, BetaXplorer, DeltaXplorer and TrendsXplorer. AlphaXplorer uses a patented modeling engine to determine how a stock is likely to perform over the course of a year. Through use of a heat map, BetaXplorer offers a one page view of a portfolio’s exposure to a variety of macroeconomic inputs. DeltaXplorer further compares a portfolio to custom-made benchmarks or those of major market indices. Finally, TrendsXplorer helps investors look for stocks based on their relationship to economic events, commodity prices, exchange rates or interest rate changes. The analysis spans trading history from five to 20 years.
Bear Stearns says that, when falling crude prices made recent headlines, its tools helped investors position their portfolios in the rapidly changing market environment. Our technology gave users a quick view of just how much of their portfolio was exposed to this commodity, said John Williamson, general manager of BearXplorer. With BearXplorer, investors knew exactly which stocks had the strongest and weakest relationships to falling oil prices.