CMRA can help hedge funds develop risk transparency (transparency that reveals risk profile information, but not trade details) that satisfies investor, regulator and liquidity provider requirements.

Click to view:

• What is Risk? - Chapter 1 of Hedge Fund Risk Transparency: Unraveling the Complex and Controversial Debate
• 100 Women in Hedge Funds Webcast.
• IAFE Investor Risk Committee’s Hedge Fund Risk Transparency Survey 06/06.
• CMRA’s RISK INSIGHTS - Transparency: Pros & Cons.
• CMRA’s RISK INSIGHTS - Performance Measurement & Attribution.
• CMRA’s “How to Select a Buy-Side Risk Management System”. Also with a detailed comparison matrix.
• CMRA’s fundamental analysis of the merger arbitrage strategy.
• CMRA’s survey of Fair Value/NAV practices.
• CMRA’s survey on Hedge Fund Risk Measurement & Reporting.
• Leslie Rahl’s best selling book on risk budgeting.
• IAFE Investor Risk Committee’s findings regarding hedge fund transparency.

CMRA Services

• Due diligence on ongoing monitoring
• Risk Transparency/Translucency
• Fund of funds portfolio construction
• Independent valuation
• Risk outsourcing
• Risk visualization/reporting
• Risk budgeting
• Risk branding
• Risk management infrastructure and process design
• Implement Value-At-Risk, Stress Testing and other risk tools
• Training
• Risk governance
• Structure alpha-transport transactions
• Test and benchmark complex pricing models
• Introduce customized risk and performance reports
• Review and/or design investment guidelines, policies and procedures
• Review business processes for operational risk
• New product development

Example: Peer Group Benchmark by Risk Factor

Selected Assignments

Developed an innovative guarantee structure for a fund of funds.

Selected managers for a fund of funds and undertook due diligence.

Constructed a portfolio for a fund of funds.

Conducted several widely published surveys on hedge fund risk management.

Conducted risk reviews of outside managers for a prominent foundation.

Provided monthly "fair value" opinion for technology hedge fund.

Analyzed CDO's of large investment manager and recommended both structuring and risk management enhancements.

Conducted a multi-client study on buy-side risk systems.

Conducted due diligence on underlying hedge funds for a large fund of funds.

Reviewed split capital trusts and recommended restructuring alternative.

Commissioned by the prestigious Alternative Investment Management Association (AIMA) to prepare a research report on fund of funds vs. individual hedge fund investing.

Benchmarked hedge fund transparency practices and needs of hedge funds, funds of funds and investors.

Analyzed dealing process related to the unwind of a defaulted offshore hedge fund with nearly 100 complex developed and emerging market credit and interest rate-sensitive derivatives. Examined the counterparties' unwind processes and prices.

Valued emerging market credit derivatives for a major hedge fund.

Trained board of public pension fund in risk budgeting techniques.

Served as Technical Advisors and Coordinators to the Risk Standards Working Group in the development and release of the Risk Standards for Institutional Investment Managers and Institutional Investors. The combined Working Group and Comment Group consisted experienced individuals from over 70 major pension funds, endowments, foundations, insurance companies, investment managers, master trustees, regulators, consulting firms and academics.

Evaluated the VaR implementation and reporting to the Board of Directors for one of the largest non-US. plan sponsors.

Developed derivative guidelines for the overall fund and its traditional as well as alternative investment managers for a large corporate pension fund in the US.

Reviewed the manager guidelines and the risk management capabilities of four of the outside managers for one of the largest Manager of Managers.

Analyzed the impact of several proposed covenants for a CBO fund and to review the robustness of their approach for a hedge fund.

Analyzed the circumstances surrounding Orange County’s unexpected collateral calls for an assessment of the impact on the overall portfolio and investment strategy.

Designed and implemented a Value at Risk methodology and reporting process for a large hedge fund.

Leslie Rahl was an expert witness in the Askin/Grantt Partners matter.