Hedge Funds

Assistant Secretary Henry: Hedge fund risk less than perceived


In a speech to the Federal Reserve Bank of Atlanta on Tuesday, Assistant Treasury Secretary Emil Henry said that he is of the view that, broadly speaking, "there is less systematic risk in the hedge fund space than is generally perceived." And such risk, he added, "is really isolated in a few specific areas."

As corporate and public pension funds pour money into hedge funds, hedge funds are necessarily becoming more institutionalized, serving to mitigate risk on many levels, Henry said according to a text of the speech. "Institutionalization has brought with it the broad recognition that the industry