Reporting: a better performance measure

Past performance is no guarantee of future returns. RiskMetrics’ John Matwey says more and more investors will therefore inevitably demand third-party reporting of risk positions taken by hedge funds


A track record of positive returns is a good starting point for anyone looking for a good fund manager. Nobody wants to invest with a manager who either doesn’t have a track record or who has already demonstrated a propensity for losing money. Past performance may not guarantee future returns, but good performance is certainly better than unknown or bad performance when it comes to attracting and retaining investment capital.

So, for lack of any better measure, investors have continued to chase

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The new rules of market risk management

Amid 2020’s Covid-19-related market turmoil – with volatility and value-at-risk (VAR) measures soaring – some of the world’s largest investment banks took advantage of the extraordinary conditions to notch up record trading revenues. In a recent…

ETF strategies to manage market volatility

Money managers and institutional investors are re-evaluating investment strategies in the face of rapidly shifting market conditions. Consequently, selective genres of exchange-traded funds (ETFs) are seeing robust growth in assets. Hong Kong Exchanges…

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