Posts Tagged hedge fund management

Hedge Fund Management Liability — New Risks in the New Economy

As Bob Dylan once said, “The times, they are a changin’” — which is perhaps the most accurate assessment of the hedge fund industry today. In the wake of huge scandals, one of the largest economic downturns in the past century, and a general distrust of the banking industry on the part of consumers, hedge fund managers face more risks today than ever before. And don’t think for a second that financial attorneys are unaware of all the potential missteps a hedge fund manager can take. It is perhaps not too much of an exaggeration to say that an entire mini-industry has sprung up in the legal profession looking for hedge fund managers to make a mistake, an error in judgement, or even simply fail to provide the returns a client expects. The previously dog-eat-dog world of hedge fund management liability might now more accurately be described as shark-eat-shark.

And to some extent, it’s easy to see why. Consumers have lost their entire financial lives and security to unscrupulous hedge fund managers and financial advisors, and your clients are scared that the same thing could happen to them. As a legitimate hedge fund manager, you’re of course not going to make any intentional missteps — but you could still be punished for things outside of your control in this new, uncertain economy.

Read the rest of this entry »

Quote: , , , , , ,

Benefits of Hedge Fund Risk Management Software

It’s often said that information is everything — and when it comes to investing, that is absolutely true. If you or your hedge fund manager is in the dark about how the market is performing, the volatility of your investments, or how your investments compare to peer investments on a given day, then there’s simply no way that you can expect to get the most out of your investment. And with such a high-risk, high-gain investment like a hedge fund, having the best information is going to give you the best chances of success.

That’s why many hedge fund allocators are turning to innovative hedge fund risk management software products now coming onto the market. The new trend in risk management software — and financial software in general — is constant access to market information, which is incredibly advantageous when it comes to making the most out of a hedge fund. The better hedge fund risk management softwares on the market right now not only provide an analysis of real-time hedge fund exposures, they also include a variety of stress tests and risk metrics to help you understand the pros and cons of different strategies, and make better decisions about the direction in which your portfolio should go. Additionally, top of the line hedge fund management software are also live-linked with a number of hedge fund databases to allow you to see how your fund’s peer group is performing, as well as returns-based quantitative analyses of your hedge fund groups and how yours stacks up in comparison. Finally, you can also use a hedge fund risk management software to track your fund liquidity, and some softwares even allow you to set alerts on underlying fund redemption notifications to make sure that you never miss out on a redemption date.

Read the rest of this entry »

Quote: , , , , , ,