1 / 15

Best Practices in Monitoring Systemic Hedge Fund Risks

Learn about hedge fund risks, regulatory frameworks, and best practices for oversight to prevent systemic threats. Understand common challenges and key areas of concern. Presented by Heather Smith from CIMA.

bvoyles
Download Presentation

Best Practices in Monitoring Systemic Hedge Fund Risks

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Best Practices in Identifying and Monitoring the Systemic Risks of Hedge Funds Presenter: Heather Smith Deputy Head, Investments and Securities Division Cayman Islands Monetary Authority

  2. CIMA actively regulates funds

  3. Promoting separate regulatory frameworks = greater innovation, flexibility, and creativity

  4. CIMA’s Regulatory Objectives for Private Funds are to… • Compel proper disclosure • Provide investors with valuable information

  5. Can 1 Hedge Fund pose a Systemic Risk? NO But…

  6. Hedge Funds Could Collectively Cause Systemic Risk

  7. “I'm not worried about 8,000 hedge funds, ... I'm worried about 400 or 500 of them - that's what could start the ball rolling down the hill. While most hedge fund managers are pretty smart and knowledgeable, it doesn't take too many to start a rout. One nervous cow and you could start a stampede.” -Jim Melcher, founder & president of Balestra Capital taken from interview with CNN/Money staff writer Amanda Cantrell in November 2005

  8. Primary areas of Systemic Risks

  9. Liquidity

  10. Leverage: Fact vs Myth

  11. Investment Strategy

  12. Enabling Effective Oversight

  13. Common Challenges for Regulators

  14. Best practices must come from within the global hedge fund community

  15. Best Practices

More Related