Overwhelming Majority Of Hedge Funds Add Compliance Staff Since '08

May 24 2012 | 3:22am ET

There aren't many hedge funds that aren't spending more on compliance today than four years ago, according to a new survey.

Just two in 100 hedge funds have not hired additional staff to deal with regulatory compliance since 2008, KPMG and the Alternative Investment Management Association, while a whopping 98% have done so. And with regulators and institutional investors demanding more of the industry, it's not the only area that hedge funds have worked to improve.

Some 84% of hedge funds say they've improved transparency for investors. Nine in 10 have seen an increased demand for due diligence—and for two-thirds of hedge funds, it's paid off with new pension fund investments.

"Institutionalization has been described as the continuing inflow of new institutional capital into the industry," AIMA CEO Andrew Baker said. "But as this report demonstrates, it is also about the increasing sophistication of operational infrastructure with respect to transparency, compliance and due diligence."


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

AIMA: How The U.K.'s SMCR Will Affect U.S. Firms

Jun 20 2017 | 6:29pm ET

U.S. investment managers need to think seriously about how tough new U.K. conduct...

 
Error

From the current issue of