Fri, Oct 9, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedgeanalytics and ZHAW publish first Total Risk Rating for fund of hedge funds

Wednesday, March 21, 2012
Opalesque Industry Update - In the endeavour to make the Hedge Fund Industry more transparent and accessible, Hedgeanalytics Ltd. and the ZHAW have developed the Total Risk Rating. This is the first public rating for fund of hedge funds which allows an on-going assessment of the overall risk of a fund. The first official Total Risk Rating has been completed in January 2012 on Basel Asset Managements’ funds and is now available on the website of Hedgegate.

Hedgeanalytics Ltd. is a spin-off of the ZHAW – School of Management and Law in Winterthur, Switzerland, that runs the FoHF platform Hedgegate and provide valuable information to the public.

The Total Risk Rating has been developed by the ZHAW and Hedgeanalytics Ltd, with the aim to provide a detailed and comprehensive analysis of the risks of a fund of hedge funds. This solid and in-depth due diligence has been applied explicitly to the specific risk characteristics of fund of hedge funds. It is based on frontier scientific evidence and is designed the way that the possible influence of the analyst on the results is minimal. Thus, the process that leads to a specific rating is replicable and improves the comparability. The results are published on

The Total Risk Rating is based on the three categories: operational risk, liquidity & credit risk and market risk. The emphasis lies on the operational risk part. Each category is evaluated separately and then aggregated into a single rating (“A” to “E”). “A” represents the best, “E” the worst possible outcome. The rating letter together with a summary report on the key findings is made available to the public on A detailed report can be obtained from Basel Asset Management.

The first Total Risk Rating for three funds of Basel Asset Management has been accomplished in January 2012. All funds obtained a best possible A-rating. According to our methodology these results can be interpreted as “excellent” and are associated with very low risk. Particularly emphasised must be the high level of operational quality of the funds and the management which did not show any substantial shortcomings.

Basel Asset Management (BAM) was founded in 2004 by Roland Eberhard and has offices in New York and Pfäffikon SZ. BAM has a long-term strategic partnership for fund research- and management with ALPS Advisory Ltd. in Hong Kong. The group oversees over USD$1.2bn of assets in North America, Europe and Asia.

(press release)

Here is a recent interview of Zhaw's Dr. Meier on Opalesque:
Opalesque Exclusive: Dr. Meier: many fund of hedge funds managers are still not adequately equipped to execute proper selection and DD Source


What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Investing - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  2. Manager Profile - Pimco alternative funds flourish as 30-year bond rally fades[more]

    From Inside Pacific Investment Management Co., the bond behemoth that lost two chief investment officers last year and saw almost $500 billion of client money leave, a hidden profit engine is easing some of the pain. For more than a decade, Newport Beach, California-based Pimco has qu

  3. Niche Investing - Art investment funds: Attracting institutional and other new investors[more]

    From The Deloitte/ArtTactic Art and Finance Report 2014 (the "Art and Finance Report") noted that the "global art investment fund market was estimated to be worth at least $1.26 billion in the first half of 2014." This seems almost inconsequential when juxtaposed with the $54 billion of

  4. Hedge fund Barnegat survives September’s market selloff[more]

    Komfie Manalo, Opalesque Asia: Bob Treue’s $679 million Barnegat Fund proved resilient after another month of market letdown as the hedge fund gained 2.2% last month, bringing its year-to-date gains to 2.8%. Treue said in his monthly report to i

  5. …And Finally - Japanese men want upgrade on their virtual girlfriends[more]

    From Five years after News of the Weird mentioned it, Japan's Love Plus virtual-girlfriend app is more popular than ever, serving a growing segment of the country's lonely males -- those beyond peak marital years and resigned to artificial "relationships." Love Plus models (Rinko