Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
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   |   
Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1