@article {Brittain77, author = {Bruce Brittain}, title = {Hedge Funds and Public Policy}, volume = {2}, number = {2}, pages = {77--87}, year = {1999}, doi = {10.3905/jai.1999.318940}, publisher = {Institutional Investor Journals Umbrella}, abstract = {This article takes a practitioner{\textquoteright}s view that the developments in the market for collateral imply that transparency and stress-testing would probably not have been enough to prevent last year{\textquoteright}s economic crisis. For instance, understanding individual manager risks would not have produced an understanding of the systemic risks being run by the community as a whole. Hedge fund advisors would have had great difficulty discovering the proliferation of copycat trades that pervaded the books of hedge funds and their bank and broker-dealer counterparts. Furthermore, it is almost inconceivable that more complete knowledge of managers{\textquoteright} portfolios or great stress-testing would have predicted the massive increase in risk estimates embraced by banks and broker-dealers in the September-October period. At the very least, governmental policymakers must recognize the viewpoint of actual market participants in determining their own solutions.}, issn = {1520-3255}, URL = {https://jai.pm-research.com/content/2/2/77}, eprint = {https://jai.pm-research.com/content/2/2/77.full.pdf}, journal = {The Journal of Alternative Investments} }