Money managers under the microscope
GAIM 2009: Paranoid? You should be…
But one means that shows quite how drastic the change has been is in the area of risk management — not normally the sexiest topic but now an area of real concern for investors.
Jonathan Feeney of Investcorp Investment Advisors, which allocates money to and conducts due diligence on underlying hedge funds, makes the point.
“In the last five years or so … everything was flying and no-one cared about risk management. It’s only when problems arise that it suddenly becomes a focus, and then it’s too late.
“With a new manager, it’s horrible to say this, but it’s got to the stage now where you want to check the office exists. It’s the paranoia now post-Madoff.”