Home ground disadvantage
Christopher Donoho and Marc Gottridge of Lovells discuss whether US Bankruptcy Court 'avoidance' powers bring up more risks for investors in, and prime brokers to, hedge funds
The proliferation of hedge funds - along with the high risk, high reward positions that they take and the ever-present potential for fraud - brings with it the increased risk of financial collapse of the unlucky or undiversified ones.
The phenomenon has already shown itself with some recent high-profile collapses. The majority of hedge funds are organised and registered in offshore jurisdictions, yet when trouble arises United States Bankruptcy Court protection is frequently sought, in large
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