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Longing For HFs With Short-Term Memories
No hedge fund disaster appears to be big enough to discourage investors determined to play in alternative investments, Reuters reports, citing analysts.
No hedge fund disaster appears to be big enough to discourage investors determined to play in alternative investments, Reuters reports, citing analysts. Bradley Ziff, who heads Mercer Oliver Wyman’s hedge fund advisory practice told Reuters, “Concerns about good governance at hedge funds come and go in waves. Right now there are probably thousands of copies of the MotherRock story circulating and they will be looked at carefully. But over time, they will be ignored.” MotherRock, of course, is the energy hedge that recently announced it was closing after suffering massive losses. The New York-based fund is only the latest example of such failure, and it apparently it won’t restrain the well-heeled who don’t have a good handle on their chosen managers, since they care only about the pot of dollars at the end of the road. “There are a number of investors who simply aren’t that curious about what is happening and don’t ask,” said Ziff, specifically pointing to affluent individuals. Institutions are somewhat more careful as they have more at stake. “We try to steer away from the rock star manager model,” Michael Travaglini, executive director of the $42 billion Massachusetts pension fund said in a Reuters interview.