The use of daily factor returns allows Our Long Horizon US Equity Model (USE3L) to respond more quickly to changing market conditions. When risk is highly dynamic, increased responsiveness results in significantly more accurate risk forecasts. We have conducted a number of practical tests to help clients understand the real-world implications and benefits of using USE3L.

This case study focuses on some of the features that make BarraOne an innovation in risk management technology. We will demonstrate that, with the power of BarraOne, traditional (Barra) risk reporting and flexible reporting can be combined to ensure that sources of portfolio risk are completely consistent with the investment strategy, effectively allocating the risk budget.