Mon, Oct 24, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Cash manager Horizon urges investors to understand risk in cash and margin accounts

Tuesday, July 24, 2012
Opalesque Industry Update - Horizon Cash Management said today it urges investors to adopt best practices and perform ongoing due diligence to fully understand the risks associated with their cash and margin accounts held at the firms in which they entrust their capital.

In the wake of the Peregrine Financial Group liquidation, a mere nine months after the MF Global bankruptcy, Horizon advocates cash segregation in separately managed accounts and, where appropriate, advises that excess cash be swept away into custody/trust accounts at banks or other financial institutions.

"As a service provider to the alternative investment industry for over 20 years, we support industry-wide best practices and close scrutiny of margin accounts and custody arrangements,” said Pauline Modjeski, Horizon President.

“While the unfortunate news about Peregrine Financial serves another blow to the futures industry, fraud can occur in any asset management business. It is critical for all investors to be vigilant about the preservation of their capital and to be sure that their idle cash is not in a commingled margin account.”

Horizon offers the following advice for investors, both institutional and retail:

  • The return of capital should be paramount to the return on capital
  • It is imperative to know where the cash component of your assets are being held and the safeguards in place for those cash balances
  • Cash holdings should be diversified if the amounts are material
  • Be aware of the risks of certain short-term cash-like instruments as a substitute for cash
  • Ask if your asset manager has cash and custody accounts at financial institutions

Press release


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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. Other Voices: Follow the advice of investment consultants - I think not[more]

    Mark Rzepczynski, Founding Partner, Chief Investment Officer AMPHI Research and Trading, writes on Harvest Exchange: Investment consultants are a force to the reckoned with in the pension world. They advise and drive many pension decisions around the globe. Consultants literally control trillion