Corporate News

MPI conducted a seminar in Manhattan at the Midtown Hilton on May 14th. Seminar agenda can be found here. MPI’s research and development efforts over the past several years in the areas of alternative investments and returns-based style analysis have proven quite timely. The dramatic rise in hedge funds and diminished manager transparency have escalated the need for more advanced research and risk management applications. In that spirit, the program format is designed as an educational workshop that illustrates how to successfully apply MPI’s technology using well-known hedge fund stories such as Long Term Capital, Soros Quantum Fund and others as case studies. Additionally, we will introduce our new Hedge Fund Engine, as well as our new asset allocation module for Stylus Pro, MPI Allocator.

MPI Allocator, our asset allocation module and the newest addition to the MPI Stylus Pro Suite, is scheduled for beta release in early 3rd QTR 2004. Allocator applies the best of MPI’s analytics, visualization and reporting to the development and analysis of asset allocation policies. Its breakthrough design offers unlimited flexibility in conducting asset allocation studies and presenting their results in client-ready reports. The Allocator comes with a library of templates that include dozens of charts and tables and ready to use reports. Like all MPI products, we will continually update Allocator with new methodologies, forecasting models and features from which you can choose.

MPI Hedge Fund Engine, which offers a new model of returns-based style analysis (RBSA), is scheduled for release in May 2004. The engine dramatically improves the analysis of very active and long/short products, hedge funds in particular. This patent-pending technology from MPI presents a major breakthrough in RBSA and the first significant advance in this area since it was developed by Sharpe in 1992, addressing all of the original methodology’s limitations. It delivers unparalleled precision in sensing portfolio dynamics, identifying breaks in exposure (e.g., manager or strategy changes) and protecting from spurious correlations and instability of results when analyzing hedge funds. Used to its fullest, it allows one to literally reverse-engineer alternative investment products, making it an invaluable tool for investment consultants and fund-of-funds managers. MPI has been at the forefront of returns-based style analysis (RBSA) research for the past 10 years and we will continue to deliver the best technology and methodologies to our clients.

This release marks the 13th notable stage in the platform’s development. Specific enterprise features are highlighted in the accompanying Pilot 26 newsletter: excel database functionality, new macros, statistics, prospector filters, and more.

MPI’s “first generation” client servicing efforts were guided by two outstanding client servicing professionals for over 4-years – Michelle Crawford and Jack Doyle. In early 2003, both Michelle and Jack expressed interest in transitioning their careers in different directions. Michelle began pursuing her career aspiration to become a nurse and Jack, a partner at MPI, now oversees his own consulting business. In response, MPI formed the second generation Client Services Group (“CSG”) from the homeoffice in Summit. Nate Nassif joined as the director in 2003, and soon after was joined by two other teammates: Megan Woods and Alex Blaker. Meg will be responsible for client research related projects and Alex will be managing first level support and project management activities.

MPI Stylus Webª – an enterprise information delivery system – offers institutions a simple, web-based platform for instantaneously providing dynamic reports and other content to their desired recipients, regardless of location. Organizations get institutional control and consistency in reporting, as well as an incredibly simple process for adding or modifying Stylus report templates that immediately make the changes available to every one of their MPI Stylus Webª users. The individual users of MPI Stylus Webª get an elegant, user friendly interface that allows access only to institutionally-approved Stylus report templates and databases, but allow for dynamic selection of managers, client portfolios and a few analysis parameters.

eVestment Alliance now offers clients of Markov Processes International (“MPI”) the ability to download it’s performance return history on all investment strategies reported in their eASE Database. The performance history is provided in monthly and quarterly returns all from one link located on the MPI website.

eVestment Alliance provides three cuts of information at 10, 15 and 20 business days after the quarter-end. The first cut of data provided on the tenth business day after quarter-end typically contains approximately 80% of the strategies updated, while the final cut of information will typically contain over 90% of the strategies updated. In addition to the performance history provided in the Stylus Download, eVestment Alliance offers an expanded dataset including selected fields related to asset information, client information, various portfolio characteristics, etc. This allows MPI’s Stylus Pro clients access to pertinent information related to an investment strategy beyond performance data.

MPI clients have access to the standard Stylus Download capability at no additional charge, while an expanded dataset can be purchased for only $1,500 per annum. For more information about how to purchase the Download capability, please contact Matt Crisp at (757) 301-9951 or via e-mail to matt@evestmentalliance.com.

In 2003, MPI helped to roll out templates for large scale installations of Stylus RIA at several institutions, allowing these firms to empower their sales reps, ensure institutional consistency in client communication materials and to shorten the reaction time of the home office to field requests.

Several MPI institutional clients rolled out proprietary rating systems using MPI Prospector Enterprise

In a collaborative effort using MPI’s Integration Platform, MPI and DIA developed an automated system for production of internal and external communication materials. Stylus-produced mutual fund, VA and separate account factsheets can be found in both English and Spanish at the Diversified’s website: www.divinvest.com