While not burdened with all the same regulation as other financial institutions, hedge funds face their own special challenges. As 2013 approached, I asked fellow bloggers Chris Keegan and Ann Longmore their take on the most critical issues for hedge funds in the coming year. Here are the three issues we think most vital for risk managers of hedge funds, and their brokers, to understand in the coming year.
Hedge Fund Governance, Director Liability and the Weavering Case
Ann Longmore: “The Weavering Case brought to light the risks of creating the appearance of compliance without a robust management structure to actually execute. Hedge funds need to understand that when it comes to governance meeting the letter of the law is not sufficient.”
Hedge Funds Are Not Immune to Cyber Challenges
Chris Keegan: “While hedge funds often cite the fact that they are not retail institutions holding massive amounts of data, they nonetheless hold very valuable information and intellectual property. Protecting those assets should not be ignored, and recent improvements in cyber policies make such risk mitigation possible.”
What JOBS Act 2012 Means for Marketing Hedge Funds
Me: “Last summer’s JOBS Act held out promise that hedge funds could start advertising their offerings. However, before rushing to buy air time or ad space it is important to understand that having the right to advertise is not the same as being immune from liability for the content.”
We go into much greater detail about the critical issues facing hedge funds in this 30-minute video.