Industry failures could be avoided, says Capco study

Half of hedge fund failures are due to operational risk, rather than bad investment decisions, according to recent industry research.

The study of 100 failures over 20 years, carried out by financial services consultancy Capco, suggests investor due diligence, which has traditionally concentrated on management, should give equal weighting to back-office systems.

There are around 6,000 hedge funds worldwide with an estimated $600bn in assets under management. Last year 700 hedge funds closed and t

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