Riskology: What money markets can teach hedge funds

Hedge funds can benefit from understanding how vehicles they use for cash management manage liquidity risk and perform stress tests

damian-handzy-investor-analytics-hfr0915

Hedge funds have regularly been at the forefront of innovation when it comes to investing strategies, alpha generation, asset class creation and risk management. Part of that innovation comes from adopting practices and analysis from other fields, and it is in that spirit that I claim hedge funds can benefit from understanding the practices of an investment vehicle they themselves use for cash management: money markets. Recent updates to the regulations governing these funds are directly

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