March 17, 2010
Misvaluation - in the world of investment banks
One of our more recent posts touched on the case of Simon Treacher, the erstwhile portfolio manager of the BlueBay Emerging Market Total Return Fund. Treacher admitted forging broker quotes for certain hard to value emerging market bond positions and...
Posted at 07:00 PM in Valuation
November 23, 2009
Are Directors Responsible for Valuation?
Risk Without Reward frequently focuses on the issue of security valuation within a hedge fund. One of the thorniest questions is, of course, who is actually responsible for valuation. Many investors assume that, if an administrator has been appointed, then...
Posted at 07:00 PM in Valuation
January 22, 2009
PwC Proposal on Fair Value Accounting
PwC has recently released an interesting discussion paper proposing changes to fair value accounting. They do not propose eliminating fair value accounting - thankfully - but they do suggest that, for banks, only "credit related" losses be reflected in net...
Posted at 07:00 PM in Valuation
November 08, 2008
NAV Suspensions: Will FAS 157 Create Unintended Consequences?
We have now seen a growing number of funds suspend redemptions or propose restructurings, and expect that many more will follow over the coming weeks.There are many implications here, but we wanted to focus on three issues related to accounting...
Posted at 07:00 PM in Valuation
