Fitch steps up monitoring

Fitch Ratings has heightened its monitoring of liquidity management at fund of hedge fund (FoHF) managers. In light of increased redemption activity in the fund of hedge fund industry Fitch is keeping a close surveillance of rated FoHF managers and the changing liquidity profiles of their funds. This entails scrutinising changes in assets under management, structure and diversification of the fund investor base, scheduled and estimated redemptions, the FoHF’s liquidity schedule and other liquidity facilities.