The increasing popularity of hedge funds has forced them to improve their risk management procedures, according to a new study by financial ...

The increasing popularity of hedge funds has forced them to improve their risk management procedures, according to a new study by financial services consultancy Mercer Oliver Wyman. According to the study, around 85 per cent of hedge funds now have a chief risk officer. Hedge funds have also invested in internal audit departments as more institutional investors allocate assets to the alternative investment managers. Institutional investors are demanding more disclosure than wealthy individuals who have previously been the mainstay of hedge fund investors, according to the report. Along with increasing risk control the study found that hedge funds now document controls for investors and provide more information on investments held than in previous years.