Central Banks
Multi-Manager Hedge Funds Pose Risks, BOE’s Bailey Says
Andrew Bailey
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
The rise of multi-manager hedge funds poses a threat to financial stability, according to Bank of England Governor Andrew Bailey.
Bailey said there are signs of correlated activity, which combined with often ruthless risk-management policies could see these funds rush to the exits during market shocks.