Hedge Funds

S&P issues new criteria for hedge fund ratings


Standard & Poor's Ratings Services this week announced enhanced ratings criteria for hedge funds, hedge fund managers and funds of funds.

The firm has provided hedge fund ratings since 2000, but until recently the business had been growing slowly. S&P believes that now is an opportune time to enhance its criteria as more institutional investors, which desire such ratings, are making hedge fund investments.

The ratings include an assessment of both operational and business risks, with greater attention now paid to operational risks such as back office management, compliance and audit procedures, valuation techniques and risk management.

S&P will also