An incentive for risk?

Hedge fund perspective

pg81-schachter-gif

The mainstream press loves to highlight instances of hedge fund fraud. However, fraud is only a symptom of the basic risk issue – namely, the problem of conflicting incentives between hedge fund managers and investors.

Incentive problems arise from the delegation of authority by investors to managers over portfolio management. Managers' actions will differ from those that investors would prefer if the objectives of investors and managers differ. Differences in objectives emerge from the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: