Globe and Mail – With interest in hedge funds exploding, some ratings agencies are starting to scrutinize the lightly regulated, opaque industry.
Moody’s Investors Service in New York is one. It’s developing a methodology for rating hedge fund operations and plans to release its first rating by the end of April. The ratings are focused on U.S. funds but may well include some Canadian funds farther down the road.
The move comes as global interest has soared in Canada’s $30-billion hedge fund industry, lured by its exposure to commodities prices. However, the industry has been plagued recently by several high-profile scandals, such as the collapse of Portus Alternative Asset Management Inc. and Norshield Financial Group.
