New Study Shows Hedge Funds Not As Risky As You Might Think

December 25, 2013 PJ Moore Hedge Fund News

Richard Berner

Richard Berner

According to the new Office of Financial Research, an offshoot of the Department of the Treasury, hedge funds do not appear to be as risk-prone as many people believe them to be.

The OFR took data which until now has been held in confidence, but is now readily available as a result of the demands of the Dodd-Frank Act. That now accessible information includes 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, director of the OFR.

Berner stressed, however, that these are only preliminary results based on early analysis of the data.

The Managed Hedge Fund Association was satisfied with these early findings and said that their own look at the data has led them to the same conclusion, that “hedge funds currently do not pose a systemic risk.”

Department of the Treasury, Dodd-Frank Act, Managed Hedge Fund Association, Office of Financial Research, Richard Berner,

Comments are currently closed.