Knowing when the price is right

Discretionary stop/loss procedures are increasingly being favoured over automated risk controls, as volatile markets have caused these strategies to get stopped out at a loss. Prices opening significantly lower than their previous day during October and November 2002 are highlighted as the main cause for managers to look for added flexibility.

Single strategy and funds of hedge funds, particularly in long/short equities, are now being urged to view their risk on a portfolio basis and place their