AIMA Updates Capital Adequacy Notes

Oct 22 2008 | 12:23pm ET

With capital adequacy a life-and-death issue for hedge funds in the current market crisis, one industry association is offering a hand.

The Alternative Investment Management Association, the chief lobbyist for hedge funds in the U.K., is not offering a capital infusion, but instead has updated its guidance on how to implement internal capital adequacy assessments.

“The hedge fund industry has embraced the capital adequacy debate proactively and the sophisticated risk management techniques undertaken by hedge funds make this framework possible,” Andrew Baker, deputy CEO of AIMA, said.

The revision to the original guidance promulgated last July is designed to reflect the new world faced by hedge funds following the financial catastrophe that has frozen credit markets, plunged equities markets into wild volatility and claimed several major Wall Street and British financial services firms. It includes examples of capital-adequacy assessments put in place by other companies.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...