In theory, it sounds like a good idea – publicly rating hedge funds according to their level of operational risk. But whom exactly is it helping? In July this year, Moody’s Investors Service announced its criteria for rating hedge funds; in September, Standard and Poor’s followed suit.
Funds of hedge funds, which can perhaps be seen as having the most to lose from a rating system, have been quick to highlight the ratings’ failings. Investors tend to buy into funds of hedge funds on the basis that these funds have due-diligence expertise.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
