Fitch Preps Fund Of Funds Ratings

Apr 1 2008 | 12:36pm ET

Fitch Ratings is expanding into funds of hedge funds. Or, at least, rating them.

The ratings agency is set to unveil its first batch of fund of funds grades this month. The ratings will be similar to those the firm uses for fixed-income, equity and collateralized debt obligations, with funds of funds rated between FoFHM1 (the best) and FOHFM5 (the worst).

Fitch will consider specialized resources, decision-making expertise, risk management and portfolio management processes in rating funds of funds. The firm will score funds on a scale of one to five in five categories: company and staffing, fund/manager selection, portfolio and risk management, investment administration and technology. The first two will be given a 30% weight, the third a 20% weight and the last two 10%.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.