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: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.