FMO, a portfolio management system for hedge funds, has released an upgrade of its system. The main focus of the release is improved real-time and historic reporting of fund performance across multiple prime brokers and custodians-for better trading decisions to manage counterparty risk and to give external clients more transparency.

FMO is able to give fund managers information on how they gained alpha and what parts of the portfolio generated it as well as helping them make better investing decisions and giving better transparency to investors, said Paul Lemphers, general manager of FMO.

FMO’s portfolio management system provides users with an integrated portfolio management system and fund accounting system. The FMO portfolio management system was originally developed for the Portland House Group, a private investment company based in Australia.

Avis Tang, chief operating officer at Blue Pool Capital in Hong Kong uses the FMO system. The investment advisory company has two clients: a family office and Absolute Partners Management, the manager of the Absolute Partners Fund, an Asia excluding Japan long-short equity fund that launched in November 2004.

FMO expect a number of hedge fund managers to start operations in Hong Kong and Singapore over the next 12 months, estimating 50-80 could launch, mainly in Hong Kong as funds look for China exposure. With increased due diligence by investors, FMO believes it system will be able to cope with reporting demands and will pass the process.