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Article: Operational Risk as Hedge Fund Investment Criterion.(The Bank of New York)
- Article from:
- Securities Industry News
- Article date:
- June 26, 2006
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BNY joins with consultant in urging closer attention to systems and infrastructure
Investors should evaluate the strength of a hedge fund's operations and the measures it takes to mitigate operational risk before deciding to invest in it, according to a report issued by Bank of New York (BNY). The report, titled "Hedge Fund Operational Risk: Meeting the Demand for Higher Transparency and Best Practice," outlines five operational areas that institutional investors should scrutinize: experience of personnel, compliance, internal controls and procedures, portfolio pricing and the quality of service providers.
According to the report, which BNY produced in ...