RE: IBG YBG WBG

From: hereForTheMarketing
Affiliation:
Address:
Date: 25 Apr 2007
Time: 10:46:41

Comments

Glyn. First and foremost thanks for you years of dedication to our side of the industry. You have given many of us much with your sites and your book. I have your book and love it. As a Risk Manager working in the Alt. Investment industry for 20 years working with some of the best firms CT., I would have to agree with you 100% Risk Managers are used more for marketing purposes than anything else, especially on the buy side. Risk Management is not a high priority on management’s list in most firms because they feel it will diminish returns and exposes practices that are outside the scope of normal portfolio management. But, clients want to feel as though there is someone over-seeing the portfolio that will provide parameters and controls. Sure they are hired, sure the controls are put in place but rarely are they followed. This is for the hedge funds that actually spend money on hiring the risk manager and the systems to support them!!! Most of the 9,000+ firms out there don't even have that! They feel the risk reports they get from their prime broker is enough. But, the PM doesn't even read them; they would rather look at alpha generating research. Sure, there are exceptions. But, those firms on the buy side who have a risk manager rarely pay much attention to them. The Risk Manager should report to the Head of Marketing. We as risk managers have to sell to the PMs that we are not inhibitors, but contributors to the returns.

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