Lessons Learned from 2008: Hedge Funds Need to Diversify Custodial, Operational Risk
Michael Murray, Partner Shoreline Trading Group
February 2009
There is little doubt that the events of 2008 will have long lasting effects on the asset management industry. Additional oversight and regulatory statutes are a given as a result of this tumultuous year and asset managers around the globe have had to reassess their investment and operational strategies.
Some changes will be brought about by forces from outside the industry as Congress debates the financial risks inherent in investing. On 13 November 2008, 110th Congress held a hearing, Hedge Funds and the Financial Market, the purpose of which was to examine risks to the financial markets posed by hedge funds. These hearings will no doubt lead to proposals for regulatory and tax reforms. Financial experts and investors alike will have to wait and see the extent to which these hearings will affect the industry.
