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Risk USA 2005: Hedge funds discuss current risk challenges

Hedge fund risk managers participating in a panel discussion at the Risk USA 2005 conference in Boston this morning said investors in hedge funds might be better protected by a larger population of fund chief risk officers (CRO), rather than increased regulation.

“Regulators do have a mandate to understand and monitor systemic risk but it is a very difficult thing to get a handle on,” said Ken Grant, US chief risk officer at London-based hedge fund Cheyne Capital.

The panel agreed that it is in the hedge fund industry’s interest to find a solution to the problem of risk oversight, but added that it is unclear how regulation will help. If regulators were to

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