Institutional Investors

Study shows risk management, clarity are key to investors


Institutional investors are bolstering their commitment to hedge funds, but they expect greater transparency and solid risk management infrastructures from managers, according to an annual global study released today by SEI in collaboration with Greenwich Associates.

The report indicates a need for hedge fund managers to enhance their risk management infrastructure and risk reporting, and to institutionalise transparency policies to attract new capital, satisfy anxious investors, and protect their reputations.

The study also suggests the importance of fund managers clearly articulating how their investment strategies add value to investors’ portfolios, which presents an opportunity for managers to differentiate