Wed, Sep 2, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

How family offices could establish solid risk management

Thursday, June 27, 2013

amb
Kristoffer Houlihan
From Komfie Manalo, Opalesque Asia:

Family offices should seek to establish a solid risk management infrastructure when considering how to best handle investment risk, advised Kristoffer Houlihan, founder and Managing Partner Armilla Partners, an independent strategy and risk advisory company.

"Lack of effective risk management has led to significant declines in family offices. Only a few managed to utilize adequate risk controls in order to mitigate financial losses," Houlihan said in an interview with Opalesque. He added, "Without much liquidity, it was much more difficult to bounce back during early years of recovery. In times of less certainty and greater volatility, family offices can employ proper risk management and well-coordinated advisory processes to best preserve assets. Also, by looking at the investment world today, there are still many risk management flaws in even the most sophisticated investment institutions from which family offices can learn, exemplified by the bankruptcy of MF Global and the $6bn in losses at JP Morgan."

According to him, a comprehensive risk management structure should have the following: strong risk metrics, frequent monitoring, exceptionally formalized risk management and well operating risk governance procedures. He said the structure should be able to prevent even the simplest areas of risk, such as improper authorization of investment executions or insufficient techn......................

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. Cliff Asness attracts $360 million as liquid alternative funds hold up[more]

    From Bloomberg.com: As U.S. stocks suffered their worst month in more than three years in August, Clifford Asness’s managed futures fund was able to profit. Investors are taking notice. The $9.12 billion AQR Managed Futures Strategy Fund pulled in an estimated $360 million in net subscriptions last

  2. Performance - Einhorn and Loeb's hedge funds both decline 5% in August, Some target-date funds miss in the market turmoil[more]

    Einhorn and Loeb's hedge funds both decline 5% in August From Reuters.com: Hedge fund billionaires David Einhorn and Daniel Loeb saw their main funds lose roughly 5 percent in August during a dramatic market sell off, two people familiar with their returns said on Monday. Einhorn's

  3. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  4. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  5. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Rico’s Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

 

banner