(Reuters) – Hedge fund investors may find peace of mind in a new service that reviews how managers work and bestows a seal of approval that could prove popular at a time the $1 trillion industrycopes with a string of frauds.
Amber Partners, London and Bermuda based specialists who comb through hedge funds’ trading records, corporate documents and other things, on Wednesday unveiled a review service that will certify a hedge fund’s operational side of the business.
The service will not review a managers’ investments or trading risk, however, and some recent heavy losses in the industry have been caused by bad bets rather than poor business practices, industry analysts noted.
