With the increased scrutiny of risk management in hedge funds, intensifying regulatory requirements to operate them, and mounting market pressures, it has become clear to everyone in this field—from risk managers and regulators to traders and investors—that in order to achieve continued success, the internal operations and transparency of hedge funds as a whole must be improved upon.
Throughout her career at various financial institutions, author Armelle Guizot has seen firsthand how risk management and compliance structures have worked for different financial instruments. But when it came to hedge funds, she quickly realized that risk management had only been performed on the surface and was applied superficially, primarily as a marketing sweetener, not for true risk management purposes.
Now, with The Hedge Fund Compliance and Risk Management Guide, Guizot looks to bring more transparency to this topic, by providing you with a broad examination of the most important compliance and risk management issues associated with today’s hedge funds. Straightforward and accessible, this invaluable resource covers everything from how hedge funds continue to generate lucrative returns to why some use sophisticated instruments and financial engineering to get around fundamental regulatory laws. Along the way, through real-world examples, Guizot proves—on a quantitative and qualitative level—just how integrated hedge funds are in today’s markets, and she offers practical advice on how you can deal with this reality.
This book also discusses many other issues with regard to hedge fund compliance and risk management, including:
- Different hedge fund strategies—from global macro to relative value arbitrage—and their performance history
- Types of hedge fund risk—from pricing and leverage risk to liquidity, credit, and operational risk
- Basic risk management standards and recommendations—from VaR and stress testing to scenario analysis and omega
- Methods and models used to detect hedge fund fraud
- And much more
The applications of regulation and risk taking are balancing acts, which keep returns healthy and contribute to stable financial markets and global economies. With The Hedge Fund Compliance and Risk Management Guide, you’ll discover exactly why this is true and learn how you can hone your skills to make better decisions in the dynamic world of hedge funds.
