The Treasury’s new Office of Financial Risk (OFR) has concluded that hedge funds are really not the risk-prone investment vehicles they are commonly thought to be.
The OFR analyzed data, hitherto confidential, but made available to the OFR under the aegis of the Dodd-Frank Act, covering leverage levels, risk management and asset valuation practices of hedge funds.
"While these results are very preliminary, they seem to contradict the idea that hedge funds typically employ risky strategies," said Richard Berner, stressing that the results were as yet tentative and based on only a preliminary analysis.
His findings were, understandably, welcomed by the Managed Funds Association, which said they corroborated its own view that “hedge funds currently do not pose a systemic risk.”
Hedge...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full ArticleAlready a member? Log in here
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
