Sunday, 21 September 2014
Last updated 1 day ago
Jun 24 2009 | 2:19am ET
Another ratings agency is changing the way it looks at the hedge fund industry.
Moody’s Investors Services said it will now group its ratings into five categories and offer a ratings scorecard to make its methodology clearer, Dow Jones Newswires. It’s move follows Fitch Ratings’ decision to change the way it gauges risk in the funds of hedge funds it rates.
Odi Lahav of Moody’s took pains to distinguish the firm’s hedge fund ratings from its ratings of structured finance products, which are blamed in part for the magnitude of the financial crisis. He told Dow Jones that Moody’s uses a “fundamentally different” approach for the few hedge funds it rates, focusing on governance, valuation and trading systems, and not taking into account a hedge fund’s performance or strategy.
Currently, Moody’s rates just 20 funds from nine firms, with a total of $80 billion in assets under management. But their clients—who pay the firm for the ratings—are among the largest in the industry, including Brevan Howard Asset Management, Citadel Investment Group, Millennium Management and SAC Capital Advisors.
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.