Firinne Capital, a digital assets fund manager, implemented the Talos Portfolio Management System (PMS) in order too streamline and scale its operations. As the firm expanded, maintaining and reconciling its PMS became “resource intensive.” With Talos, Firinne Capital gained a view of positions, risk, and P&L across exchanges and custodians, allowing them to replace manual workflows with “automated reconciliation, and to free up time to focus on growing the business.”
Firinne Capital is a digital assets fund manager that derives its name from the Gaelic word for “truth”. The firm bridges the ecosystems of traditional finance and blockchain-powered assets.
Its founding partners combine experiences as digital assets adopters with investment management and tech expertise. Firinne Capital’s fund aims to provide investors with the “opportunity for capital appreciation and income generation that exceed market benchmarks over a market cycle.”
The team employs a research approach which combines research with data-driven quantitative insights, incorporating “top-down macro and thematic trends with bottoms-up asset analysis.”
As Firinne Capital expanded its strategies, they were outgrowing their in-house portfolio management system. They had built not only the PMS, but also the sourcing “for all the market data required to operate it.” As they expanded to trade with more exchanges, “building and maintaining their system was becoming a burden.”
In addition to all this, the month-end reconciliation process with their fund administrator was consuming “more time that could be spent on activities to grow the fund: alpha research, strategy development and meeting with top institutional investors.”
Firinne Capital chose to adopt the Talos PMS as a standalone module. While the Talos PMS is integrated with the Talos OEMS, the investment book of record (IBOR) can “receive updates from any supported exchange or custodian, even if Firinne Capital was not trading via the Talos OEMS.”
They onboarded to the Talos PMS their read-only API credentials for exchanges and custodians to monitor strategies simultaneously, with “real-time prices, position updates and risk calculations.” They leveraged the platform’s synthetic accounts feature – with “configurable sub accounts and roll-ups – to group connections and strategies, offering strategy-by-strategy risk, position and P&L views, as well as a “top of the house” view for the whole multi-strategy fund.”
Beginning with the year-end positions from the fund accountant, the Talos team was able to “pull in and reconcile all YTD transactions from Firinne Capital’s exchanges and custodians.” Leveraging the reconciliation facility, the team helped ensure month-by-month “tie-outs to the fund administrator’s reports up until onboarding was complete.”
With positions, risk and P&L locked in and Talos PMS’s reconciliation monitoring for breaks, Firinne Capital’s COO was able to “cut time spent every month on reconciliation from three days to several hours, freeing up time to focus on the growth of the fund.” The Talos PMS replaced the in-house portfolio management system and “replaced in-house connectivity with Talos’s resilient connectivity to their exchanges and custodians.”
As Firinne Capital continues to expand its investor base, the firm has potential to deepen its integration with Talos.
With the flexibility to integrate the Talos OEMS into its PMS environment, Firinne Capital can streamline workflows as complexity increases. Looking ahead within the Talos PMS, the team intends to benefit from the platform with anticipated features that include: OTC derivatives, loans, CVaR risk reporting, liquidation risk monitoring, stress testing DeFi integration.