Margin of error

Prime Brokers

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Hedge funds have had a torrid time over the past 12 months. After the collapse of two Bear Stearns funds with significant exposures to subprime mortgage-backed securities in June 2007 came the meltdown of quantitative equity fund strategies in August (Risk October 2007, pages 22-25). Various hedge funds have fallen by the wayside since, including Illinois-based Sentinel Management Group, Sydney-based Basis Yield Alpha Fund and the Peloton ABS Master Fund, run by London-based Peloton Partners.

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