Will ratings agencies miss hedge fund woes?

Thu Oct 30, 2008




Rating agencies have taken a lot of heat for their failures to warn investors about both the Enron and the mortgage-backed securities crises. Just two years ago, the agencies started rating hedge funds. Will they be any better at catching the funds' problems before it's too late?

Some of the recent moves don't inspire confidence. Ospraie's now-defunct flagship fund got a "pass" operational rating from Amber Partners until it announced it was liquidating, and Amber Capital Management's troubled hedge fund, which has frozen redemptions, still gets a passing grade. (The two Ambers aren't related.)

But other rating agencies are starting to talk tough. Standard &...

ISSN: 2151-1845 / CDC10004H

Register

By registering you will receive

  • A monthly newsletter on your specified areas of interest
  • A fortnightly update on the sector

Free Trial

Take a trial today and access

  • Performance news, fund launches, regulation changes and people moves
  • Profiles of fund managers, investors and distributors
  • Live league tables
  • Investor mandates


Popular Searches on HFI