Fitch's Fohf rating service launch will measure manager credibility

Fitch Ratings has launched a fund of hedge fund (Fohf) rating service focusing on resources, risk an...

Fitch Ratings has launched a fund of hedge fund (Fohf) rating service focusing on resources, risk and portfolio management processes. The service is based on defined quantitative and qualitative criteria that measure the manager's current qualifications and prospective capabilities. Categories include company and staffing and fund/manager selection at 30% each, and portfolio/risk management, investment administration and technology at 20%, 10% and 10% respectively. The firm said the approach it uses to assess hedge fund managers is based on the same methodology it uses to rate other i...