Among the ifs and shoulds and might-have-beens haunting investors who have lost money in hedge funds lately is the one about ratings. What if there had been a comprehensive and broadly reliable system or two that tracked the world’s thousands of hedge funds and graded them, with points or stars, thumbs up or down, based on which managers were overleveraged, which practiced poor risk management, which were merely trying to mimic successful strategies rather than create them?
Clearly, there is interest in the idea.
