Hedge Fund Clamp-down? Research Says Investors Can Watch Out for Themselves

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2276
Author: Knowledge@Wharton
Source: Knowledge@Wharton
Year: 2009

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Abstract:

According to a study by two accounting professors, even though hedge funds give their managers virtual autonomy in investment strategy, investors can successfully demand effective internal controls to discourage fraud. The paper, titled "Determinants of Hedge Fund Internal Controls and Fees" and written by Wharton professor Gavin Cassar and University of Chicago Business School professor Joseph Gerakos, also looks at the incentives hedge funds have in place to avoid excessive risk.