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The marketer should conduct thorough due diligence of the manager, which can help an unknown fund gain credibility Disadvantages of Third-Party Marketers The fees charged by third-party markets may seem high to hedge fund managers, even though the fees are paid out of incremental revenues The efforts of an independent marketer may be unnecessary for a fund that has an attractive performance history Also, if the manager has already identi ed many potential investors or if the reputation of the manager is suf cient to attract potential investors, it may prefer to market the fund in-house (discussed later) and avoid sharing fees with a third-party marketer Picking a Third-Party Marketer Just as an independent marketer should perform due diligence on the hedge funds it markets, the hedge fund manager should also research the marketer There are wide differences in the experience and abilities of third-party marketers.



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A large number of relational database management systems (RDBMSs) exist in practice. The most prominent systems include IBM s DB2, O racle, Sybase, Ingres, Microsoft s SQ LServer and Access products. An important part of these systems is a processor for the Standardized Query Language (SQ L), which is used to define, query and update relational databases. Relational databases overcome the problems of file systems in that theysupport concurrency control and transactions. In this section, we discuss how relational databases can be used in an implementation of a persistent state service. We note that the discussion in this section applies to all three object-oriented middleware systems. H ence, it is possible to use the same mechanisms for the persistence of C O RBA, C O M and Java objects.





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The fund manager should inquire to make sure a third-party marketer has no con icts of interest that could affect the marketer s effectiveness Finally, there can be considerable difference in fees and the hedge fund manager must decide how these fees correspond with marketing performance Although many third-party marketers will merely introduce potential investors to a fund manager, other marketers will make signi cant efforts to motivate a potential investor to put funds in a recommended fund and to keep in touch with the investor and maintain a marketing relationship with the investor..

The large wave of CRs had eaten up more and more meeting time by the presentation and sometimes detailed discussions in the rst half of the 1990s in the SMG plenary. When I came into of ce I wanted more meeting time for strategic issues (mainly UMTS) but I wanted also to avoid the repetition of discussions held in the subgroups in the plenary. I proposed therefore immediately before I came into of ce as Chairman to distinguish between two classes of CRs: 34

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con dence level of 99.97%. The threshold we will de ne will be lower than 99.97%; let s use 98%. In the simulations, we want to track those defaults that occur when aggregate losses are suf cient to push portfolio loss into the 98% 100% range. (See Exhibit 8.7.) There is no question that we could calculate a tail-based risk contribution measure. The question is whether it really provides any additional information. To provide an apples-to-apples comparison of a tail-based risk measure with a standard deviation based measure, we need to obtain both from the same credit portfolio model. So we used the Rutter Associates Macro Factor Demonstration Model that we described in 4 to generate both tail-based risk measures and standard deviation based measures. The results of this comparison are graphed in Exhibit 8.8. In this graph, the transactions are ranked from the ones with the least risk to those with the highest risk. Does this tail-based risk measure provide any additional information Look rst at the very low-risk transactions. The nine transactions with the lowest risk almost line up on a straight line. For that group of nine best transactions, the tail-based risk measure doesn t add any information. Next look at the highest-risk transactions. While not as dramatic as is the case for the lowest-risk transactions, the seven transactions with the highest risk also line up on almost a straight line. For that group of seven worst transactions, the tail-based risk measure doesn t add any information.

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