At your own risk

Fund of hedge funds are experiencing increasing pressure to employ an effective risk management process. Investors, shaken by debacles such as Enron and Worldcom and for those with longer memories, Long Term Capital Management (LTCM), demand more of an insight into where their capital is deployed.In addition, institutional investors are increasingly looking at hedge funds and, in many cases, expect disciplined risk management similar to what they experience in the traditional markets.Risk an