Sun, Apr 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Risk management (2) - regulation imposes requirements regardless of cost and benefit

Wednesday, February 13, 2013

amb
Ed Gouldstone
Benedicte Gravrand, Opalesque Geneva:

In this two-part article, experts in risk management practice or solution discuss the current status quo of risk management within the hedge fund industry. (Part 1 is here.)

In this article, we examine the implications of the ongoing regulatory demands, real time data as a risk management solution, operational risk, and whether more risk management demands will stifle the hedge fund industry or on the contrary, create opportunities.

Regulatory concerns and costs

Giuseppe Ballocchi, a Geneva-based financier and an expert in risk management practice, believes that in light of the regulatory developments, more time and money will be spent on risk management.

"Headcounts have, to my knowledge, gone up dramatically in the last five, six, seven years in terms of risk control and also compliance," he said. "There will be more and more expenditure, and all of that is not necessarily good, because in the end it creates cost. As for every activity, there needs to be a cost benefit analysis, but regulation seems to be imposing requirements regardless of cost and benefit."

Service providers are seeing a growth in the number of clients asking for tools and services for risk and compliance, Ed Gouldston......................

To view our full article Click here

Banner
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: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  5. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo