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

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of