TY - JOUR T1 - Hedge Funds and Public Policy JF - The Journal of Alternative Investments SP - 77 LP - 87 DO - 10.3905/jai.1999.318940 VL - 2 IS - 2 AU - Bruce Brittain Y1 - 1999/09/30 UR - https://pm-research.com/content/2/2/77.abstract N2 - This article takes a practitioner'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'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' 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. ER -