Sun, Oct 4, 2015
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. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  2. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  3. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  4. Comment - Cash and hedge funds are king[more]

    From For years we've argued that, given heightened uncertainty, a preferred portfolio posture is to barbell between cash allocations, which provide valuation optionality and mitigate unanticipated shocks, and long-short equities hedge funds that reduce "beta", or index risks, while leaving

  5. Europe - Russia has been gold for hedge funds this year[more]

    From Judging by the headlines, Russia may look like a nation in turmoil. Investors, though, don't seem to mind. In fact, for hedge funds, Russia has been one of the biggest and best stories of 2015, turning in the only positive performance among all emerging market strategies and crushing