Tuesday, 21 October 2014
Last updated 34 min ago
Feb 12 2007 | 10:45am ET
G7 finance ministers promised “vigilance” in monitoring and dealing with risks to the global economy posed by hedge funds, but not much else in terms of regulating them.
At the close of a two-day meeting in Essen, Germany, the ministers acknowledged that hedge funds and derivatives “have contributed significantly to the efficiency of the financial system” and that the growth of hedge funds has made risk assessment “more complex and challenging.” But U.S. Treasury Secretary Henry Paulson left the meetings Saturday with his skepticism of the need for more stringent regulation intact.
Paulson, the former CEO of Goldman Sachs, told reporters after the conference that a thriving hedge fund industry “is in the U.S. interest,” adding, “Market discipline, focusing on risk management of regulated counterparties, is the most effective way to address potential systemic risk concerns.”
But his fellow reguskeptic, British Chancellor of the Exchequer Gordon Brown, sounds more open to the prospect than in the past. A government source told Reuters that the U.K. is encouraged by Germany’s softer line at the conference—dropping the pejorative “locusts” and watering down its regulatory dreams to push a voluntary code of conduct.
The source said that the Treasury is “never complacent about risk” and is “happy to cooperate with international efforts aimed at improving our understanding of risk, but will resist any blanket approach.” The source also said that the U.K. would back a study of risks posed by hedge funds likely to be conducted by the Financial Stability Forum.
Paulson also pointed to the need for more information as he left Essen, noting that a U.S. working group will issue its own report on regulation “in the relatively near future.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...