Mon, Mar 2, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Kinetic Partners welcomes UK FSA's hedge fund survey, maintains industry does not present systemic risk

Thursday, February 25, 2010
Opalesque Industry Updtae - The survey contains a series of notable insights and will be of increasing value over the coming years as it is repeated on a six monthly basis.

Crucially, the FSA’s Hedge Fund Survey and Hedge Fund as a Counterparty Survey demonstrates that hedge funds do not pose a potentially destabilising credit counterparty risk across the surveyed banks and that there is a relatively low level of ‘leverage’ under the FSA’s various measures across the 50 hedge funds surveyed.

This demonstrates that hedge funds are generally not exposed to any more risk than a fund managed by the traditional sector. Kinetic Partners believes that it is totally inappropriate for members of the EU to single out hedge funds as being responsible for the recent financial crisis.

The Spanish EU Council presidency’s recent interventions on the Draft AIFM Directive further demonstrates the complete lack of understanding of hedge funds by a majority of onshore EU member states.

Andrew Shrimpton, a member at Kinetic Partners commented: “By showing how widely fund leverage figures can differ, depending on the measurement approach used, the above mentioned surveys demonstrate how simplistic and unworkable it will be for the European Commission to impose hard caps on fund leverage under the Alternative Investment Fund Managers’ Directive.”

In summary, the continuing oversight of the FSA through these surveys at six monthly intervals will identify whether hedge fund managers pose a systemic risk either individually or collectively.

Julian Korek, a founding member at Kinetic Partners added: “It has always been Kinetic Partners’ belief that the hedge fund industry does not present a systemic risk in the manner in which it had been feared. It is also clear that the many and varying risks that asset managers are exposed to are not unique to any one type of investment.”


Kinetic Partners is a global professional services firm providing forensic, corporate recovery, regulatory risk and compliance, tax and audit and assurance services to the asset management industry. Launched in 2005 as a viable alternative to the ‘Big Four’, Kinetic Partners has grown rapidly, and now has almost 100 professional staff in London, Dublin, Grand Cayman, New York and Geneva. Kinetic Partners services over 850 clients, and has attained its reputation as the leading provider of services to hedge funds worldwide; as recognition, the Firm has recently been named ‘Best regulatory advisory firm’ by HFMWeek, a leading global news source for the alternative investment industry. www.kinetic-partners.com


Bg

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 - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie