Fortune Favors the Transparent (Northern Trust)

March 2014

KEYWORDS: regulatory requirements, Hedge Fund Regulation, transparency, prime broker, central counterparties, financial crisis, Lehman Brothers, risk management, data, alpha, hedge fund investor, Hedge Fund Managers, Liquidity

Authors:

Northern Trust

Organizations:
  • Northern Trust

Summary:
In the five years since Lehman, Madoff and the financial crisis, calls for transparency within the hedge fund industry have grown louder and more frequent. Regulators need transparency into funds to monitor systemic risk. Investors, recognizing the potential for substantial hidden risks in their hedge fund investments, require transparency from their managers to help manage that risk. And managers have wrestled with the challenge of aggregating data across multiple prime brokers and counterparties.

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