24/02/2010 Author: Kapila Gohel

Managers continue to adapt to risk demands

Hedge fund managers are still busily enacting operational change, as they seek to reduce risk and pick up new investors, according to a survey by Greenwich Associates.

Approximately 70% of the managers participating in the survey said they had altered their operations to reduce counterparty risk, with 60% increasing the number of prime brokers. Managers based in Asia were especially likely to have increased their number of prime broker relationships, with 78% noting an increase.

Commissioned by technology provider Omgeo, the study examined the operational practices of over 50 hedge funds each with assets over $1bn in North America, Europe and Asia.

To manage the improved risk management many managers said they were being forced to automate areas like reconciliation, cash management, collateral management and pricing.

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