With the increased scrutiny of risk management in hedge funds, intensifying regulatory requirements to operate them, and mounting market pressures, it has become clear to everyone in this field that in order to achieve continued success, the internal operations and transparency of hedge funds are required.

Armelle Guizot has written about how risk management and compliance structures have worked for different financial instruments. When it came to hedge funds, she realized that risk management had only been performed on the surface and was only used for marketing purposes.

Guizot looks to bring more transparency to this topic by providing you with a broad examination of the most important compliance and risk management issues associated with today’s hedge funds. Straight forward and accessible, this invaluable resource covers everything from how hedge funds continue to generate lucrative returns to why some use sophisticated instruments and financial engineering to get around fundamental regulatory laws. Guizot shows how integrated hedge funds are in today’s markets through real-world examples and offers practical advice on how to deal with this reality.

Many other issues with regard to hedge fund compliance and risk management are discussed in this book.

• Different hedge fund strategies—from global macro to relative value arbitrage—and their performance history
• Types of hedge fund risk—from pricing and leverage risk to liquidity, credit, and operational risk
• Basic risk management standards and recommendations—from VaR and stress testing to scenario analysis and omega
• Methods and models used to detect hedge fund fraud
• And much more

Balance acts keep returns healthy and contribute to stable financial markets and global economies. The Hedge Fund Compliance and Risk Management Guide will show you how to hone your skills to make better decisions in the dynamic world of hedge funds.

Praise for The Hedge Fund Compliance and Risk Management Guide.

The book covers all areas of compliance and risk management. If you’re interested in starting a hedge fund or learning more about compliance, this guide is for you. Every hedge fund manager, fund of hedge fund manager, lawyer, accountant, and investment bank compliance department has been waiting for this book. There is a lot of information. Dr. Greg N. Gregoriou is an Associate Professor of Finance at the State University of New York.

With hedge funds becoming a more important part of the financial markets, the issues of compliance and risk management with regard to this instrument are beginning to be seriously addressed.

Armelle Guizot knows the policies and philosophies of the industry through her experience with several hedge funds. With The Hedge Fund Compliance and Risk Management Guide, Guizot looks to bring more transparency to this topic, by providing you with a broad examination of the most important regulatory and risk management issues associated with today’s hedge funds.

The Hedge Fund Compliance and Risk Management Guide covers everything from valuation and capital rating methodologies to specific trading strategies, theories, and models.

Filled with in-depth insights, practical advice, and real-world examples, The Hedge Fund Compliance and Risk Management Guide provides you with the information you need to understand this dynamic market.