Standard and Poor's removes ratings on fund of hedge funds

Date: Monday, July 6, 2009
Author: Benjamin Levy, Money Management

Standard and Poor’s has removed its ratings on nine single and multi-manager alternative strategy funds at the request of the managers ahead of a sector review later this month.

Some of the fund of hedge funds have had their ratings removed ahead of planned reviews by the product manufacturers on whether to continue the funds.

S&P analyst Simon Scott said many of the manufacturers were considering if they would keep their funds’ retail mandates open. A number of multi-manager fund of hedge funds have closed in the sector, including Goldman Sachs multi-strategy fund, and Credit Suisse’s closure of its Tremont fund, the statement said.

At least one fund, the Select Gottex Enhanced Market Neutral Fund, would close down, Scott said.

However, there has been a significant increase in the number of single manager funds looking for a rating to diversify their investor base, the statement said.