Gwyn Roberts

17/08/2011 Author: Gwyn Roberts

Editor's View: 17 August 2011

What happened to a relaxing summer? These are the months when the markets traditionally slumber. Instead we have been shaken by volatility, mounting debt crises and, here in London, a wave of unrest that has shocked the UK’s political class into rethinking the wiring of society at large.

Hedge funds are also thinking about their own internal workings. Slowly but surely, a growing number are dispensing with the cult of the individual in favour of a more committee-led approach – one that will keep institutional investors happy even if a valued PM decides to leave.

The comparison with the UK’s own PM-reliant politics is fitting. Last week, David Cameron was stuck on the sidelines as London’s streets began to resemble a 21st century version of a Hogarth print. Similarly, many CIOs were also away from their desks when wild market conditions scythed a chunk off the year’s gains. Little wonder that many believe placing key decisions in the hands of one person raises a red flag.

The talent of the individual can be insulated via a more corporate set-up. COOs have been a fixture at funds for some time, but, increasingly, small start-ups are beginning their journey with compliance officers, and, recently, chief risk officers.

This extra layer of responsibility isn’t cheap – particularly for launches – but it will help the industry remain vigilant, even in the slowest of summer months.

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