{"id":3550,"date":"2005-11-03T00:00:00","date_gmt":"2005-11-03T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"paamco-says-checks-can-reveal-hedge-fund-problems","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/11\/2005\/paamco-says-checks-can-reveal-hedge-fund-problems.html","title":{"rendered":"PAAMCO says checks can reveal hedge fund problems &#8211; Reuters.uk"},"content":{"rendered":"<p>LONDON (Reuters) &#8211; Fraud allegations against U.S.-based Bayou and Wood River have scared some investors away from hedge funds, but Pacific Alternative Asset Management Company (PAAMCO) saysbackground and operational checks should highlight any problems.<\/p>\n<p>&#8220;Conflict of interest is a main risk &#8230; It could come from brokers, administrators, auditors or counterparties,&#8221; Andrew Chernick, investment operations manager at PAAMCO, told Reuters.<\/p>\n<p>Chernick said one of the first things to look at is if a hedge fund runs its own brokerage division or trades through one in which it has a financial interest.<\/p>\n<p>&#8220;It&#8217;s one of the main risk areas,&#8221; he said. &#8220;They might be paying this broker 200 pounds a trade when another broker is only charging 100 pounds &#8230; There might be excessive trading for the purposesof generating income.&#8221;<\/p>\n<p>An auditor that has too close an involvement in a hedge fund is also a red flag, Chernick said.<\/p>\n<p><a href=\"http:\/\/today.reuters.co.uk\/Funds\/FundsArticle.aspx?type=fundsNews&amp;storyID=2005-11-03T084629Z_01_NOA331563_RTRUKOC_0_FINANCIAL-HEDGE-PAAMCO.xml\">Read Complete Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>LONDON (Reuters) &#8211; Fraud allegations against U.S.-based Bayou and Wood River have scared some investors away from hedge funds, but Pacific Alternative Asset Management Company (PAAMCO) saysbackground and operational checks should highlight any problems. &#8220;Conflict of interest is a main [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-3550","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/3550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=3550"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/3550\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=3550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=3550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=3550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}