LTCM Vet Says Hedge Funds Pose No Systemic Risk

A former partner at hedge fund cautionary tale Long-Term Capital Management is taking aim at the rationale for greater regulation of the industry.

Hans Hufschmid, who now runs hedge fund administrator GlobeOp Financial Services, said that no single hedge fund today presents a systemic risk to the global financial system. Hedge fund critics around the globe have pressed for stricter rules and greater transparency requirements for the industry, with many claiming that a large hedge fund failure could undermine the global economy.