Posted by Linsey,
When discussing hedge fund risk analysis management, keeping a clear definition of the different types of risk exposure for each kind of hedge fund is important. Considering the wide range of objectives and diverse trading instruments used by each specific type of hedge fund, it is important to note the varying risk concerns which apply to different types of hedge fund managers. A good consolidation of the results in a matrix form was developed by Jaeger and Säfvenblad , who define the different risk exposures by each type of hedge fund. It should also be noted that the risks associated to investing in a long-short hedge fund are completely different from those associated to a fixed income arbitrage fund.