In HFMWeek, Hedge Funds Practice Co-leader Discusses Personal Trading Policies
An HFMWeek article titled “Up close and personal: How hedge funds monitor employee trading” published on May 1 examines personal trading policies at hedge funds, the tensions between portfolio managers and firms over this, and compliance controls some firms are implementing.
Today, many firms have policies that restrict employees’ personal trading. “There is a historic tension,” says Hedge funds partner and practice co-leader Laurel FitzPatrick in the article. “Many old star managers wanted traders to invest and take risks … That is not the way many firms think today, as they tend to be more compliance-focused. Many firms also make the point that they want investment professionals to be focused on the firm and not distracted by trading their own account.”