Braced for the storm


As more credit fallout looms, a fund's infrastructure could prove to make or break its business

By Carolyn Sargent

Over the past five years, pre-eminent hedge funds have expended much treasure ensuring the safety of their capital. Those investments now seem well placed, for the day of reckoning has come. As the credit bubble bursts, rippling through asset class after asset class, the stability of the framework put in place to support a hedge fund's business, especially financing agreements and risk management systems, could have the power to make or break