IFCA – A reluctance to pay for the security provided by custodians or multiple prime brokers could mean smaller and medium-sized hedge funds are being left behind in the sector’s push to mitigate counterparty risk, according to industry experts.
More funds could now fall into that smaller size bracket following a sharp drop in assets under management for the sector, from a peak of $1.9 trillion in January 2008 to $1.65 trillion in the second quarter of this year, according to data from Hedge Fund Research.
