Tue, May 3, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Report finds hedge fund risk management protocols strengthened

Wednesday, November 14, 2012

Beverly Chandler, Opalesque London: Hedge Fund Fundamentals has published a new educational presentation, Hedge Funds & Risk Management, drawn from the MFA's recent risk management white paper collaboration with BNY Mellon and HedgeMark.

The paper examines types of risk, including Volatility Risk, Commodity Risk, Event Risk and Tail Risk. The researchers behind the collaboration concluded that hedge funds have evolved their approach to risk and increasingly strengthened their internal risk management protocols. The authors list the following points:

  • Today, 79% of firms separate their risk manager and fund manager functions to ensure independent oversight.
  • 84% of hedge funds now use off-the-shelf risk analytics that form part of the portfolio management or trading system – hedge funds are looking to a wider array of sources to model their portfolios and protect against risk of all types.
  • Over 91% of hedge funds rely on a third-party risk management administrator for fund reporting and safe keeping to help boost investor confidence in these areas.
  • 60% of larger hedge fund managers now have an employee (or employees) dedicated solely to risk management - many managers stated that before 2008 this role was not a separate function.
  • Many funds have elevated risk officers and designated them with the position of Chief Risk Officer, placing the......................

    To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  2. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n