Tuesday, 2 September 2014
Last updated 3 days ago
Dec 18 2013 | 3:36pm ET
Hedge funds are perhaps not as risky as regulators feared when crafting new rules in the wake of the financial crisis, according to the U.S. Treasury Department.
Richard Berner, who heads the Treasury's Office of Financial Research, itself created in the wake of the crisis, said that a preliminary analysis shows that hedge funds do not present a systemic risk to the U.S. economy. Berner cautioned that the conclusions "are very tentative."
"While these results are very preliminary, they seem to contradict the idea that hedge funds typically employ risky strategies," Berner told the Brookings Institution.
The data comes from newly-required filings submitted by hedge funds now required to register with the Securities and Exchange Commission. That registration was imposed to allow regulators to monitor hedge funds and any risks they might pose to the economy.
The OFR looked at leverage levels, risk modeling and quantity of illiquid assets to reach its "very tentative" conclusion.
The hedge fund lobby leapt at the report, with Managed Funds Association CEO Richard Baker saying it "tracks with MFA's view that hedge funds currently do not pose a systemic risk."
The report comes as hedge funds are groaning under increased compliance costs, caused in part by the registration requirement.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...