Talos’s New Crypto Risk Assets Drive Portfolio Management System Upgrade

WatersTechnology profiled Talos’s newly enhanced portfolio management system (PMS), shaped in part by our April 2024 acquisition of Cloudwall and informed by insights from one of our clients, Firinne Capital. The article dives into how the PMS is evolving to meet the needs of sophisticated digital asset managers—and why institutions like Firinne are choosing to partner with Talos rather than build from scratch.

Firinne Capital initially took the DIY route, building its own PMS thanks to its team’s quant and tech expertise. But as operational complexity increased, the hedge fund reassessed. “With Talos, we’ve been able to save time and cost on maintaining our own PMS while getting much more in return,” said Jim Hwang, COO of Firinne Capital. He noted that Talos’s modular design meant Firinne could tailor the platform to its precise needs—gaining critical functionality without the overhead of data vendor integrations and manual reconciliation work.

Kyle Downey, co-founder of Cloudwall and now Product Director at Talos, explained the motivation behind Cloudwall was to bring institutional-grade risk modeling to crypto—and it did just that.

“We were in a strange situation—a year before, we were waving our arms, saying risk is important, and then, poor risk management took out a big chunk of the industry in the following year. I think we were onto something there, that there really was a need. The industry wasn’t ready then, but it clearly resonated with them,” Downey says.

Following the acquisition, Talos rapidly integrated Cloudwall’s capabilities, completing the first cloud migrations within four weeks. The result: a fully unified PMS+OMS platform, offering real-time risk monitoring, margin tracking across exchanges, and alerting for stressed positions.

The article paints a clear picture of Talos’s commitment to building best-in-class tools that evolve with the needs of institutional digital asset managers.

Read the full article (free registration required).