Operational risk biggest threat to hedge funds

OPERATIONAL RISK | LACK OF RESOURCES, HUMAN FACTORS CAN EXPOSE FUNDS

LONDON -- Operational risk is the biggest threat to hedge funds in both start-ups and established firms, speakers told the Pan-European Hedge Funds Summit held in London on October 23 and 24. This sentiment reinforces Capco’s research, Understanding and mitigating operational risk in hedge fund investments, published in January this year, where partners Stuart Feffer and Chris Kundro state that 50% of all hedge fund failures can be attributed to operational risk only (see HFIT October 2003,