risk road map: navigating the evolving risk landscape in the hedge fund world moderator: brian...

Risk Road Map: Navigating the Evolving Risk Landscape in the Hedge Fund World

Moderator: Brian Ruane, BNY Mellon

Panelists: Dolores A. Atallo, Deloitte Viju Joseph, Eton Park Capital Management, L.P. Eric Jacobs, King Street Capital Management, L.P.

BNY Mellon Alternative Investment Services October 20, 2011

1

Who will win The World Series?

A. Texas Rangers

B. St. Louis Cardinals

2

How would you describe your firm?

A. Hedge Fund with less than $1BN

B. Hedge Fund with $1BN - $5BN

C. Hedge Fund with more than $5BN

D. Institutional Investor

E. Industry Influencer

F. High Net Worth Investor

3

Other than market risk, which type of risk would you rank as a most important risk factor?

Redefining RiskA defining characteristic of Hedge Funds is their focus on managing risk. As we all know, fund managers have always focused on managing and mitigating market/investment risk.

A. Liquidity / Funding Risk

B. Counterparty / Credit Risk

C. Operational / Fraud Risk

D. Regulatory Risk

4

Which type of risk do you feel is currently the most manageable?

Redefining Risk

A. Liquidity / Funding Risk

B. Counterparty / Credit Risk

C. Operational / Fraud Risk

D. Regulatory Risk

5

Risk RoleAt your firm today, how empowered is your Chief Risk Officer?

A. Veto rights

B. Reporting function

C. Can close out trades

6

Evolving Governance Models

Moderator: Brian Ruane, BNY Mellon

Panelists: Dolores A. Atallo, Deloitte Viju Joseph, Eton Park Capital Management, L.P. Eric Jacobs, King Street Capital Management, L.P.

7

Operational Risk

How have the resources allocated to your operation changed in the last 3 years?

A. B. C. D.

0% 0%0%0%

A. Increased by 10-20%

B. Increased more than 20%

C. Stayed the same

D. Reduced

8

Operational Risk

Moderator: Brian Ruane, BNY Mellon

Panelists: Dolores A. Atallo, Deloitte Viju Joseph, Eton Park Capital Management, L.P. Eric Jacobs, King Street Capital Management, L.P.

9

Managing Funding and Liquidity Risk

Moderator: Brian Ruane, BNY Mellon

Panelists: Dolores A. Atallo, Deloitte Viju Joseph, Eton Park Capital Management, L.P. Eric Jacobs, King Street Capital Management, L.P.

10

Managing Counterparty Risk

Moderator: Brian Ruane, BNY Mellon

Panelists: Dolores A. Atallo, Deloitte Viju Joseph, Eton Park Capital Management, L.P. Eric Jacobs, King Street Capital Management, L.P.

11

Disclosing Risk Many hedge funds are providing risk reporting to investors.

Today, what type of risk reporting do you provide/receive?

A. B. C. D. E. F.

0% 0% 0%0%0%0%

A. Position based reporting from fund

B. Returns based reporting from fund

C. Both position based & returns based reporting from fund

D. Position level reporting from fund

E. Reporting from a third party

F. None

12

Disclosing Risk

Five years from now, what risk reporting would you expect?

A. B. C. D. E. F.

0% 0% 0%0%0%0%

A. Position based reporting

B. Returns based reporting

C. Both position based & returns based

D. Position level reporting

E. Other

F. None

13

The Future of Risk Management

Moderator: Brian Ruane, BNY Mellon

Panelists: Dolores A. Atallo, Deloitte Viju Joseph, Eton Park Capital Management, L.P. Eric Jacobs, King Street Capital Management, L.P.

14