Hedge Fund Ratings

Moody's Investors Service published today its first public rating of individual hedge funds.  The ratings will help investors monitor their hedge fund investments and may lead hedge funds (particularly the repeat players who are constantly raising new funds) to be more transparent in an effort to improve their ratings.  Moody's success will stimulate competitive private rating services.  This is all to the good and shows that market forces can and will discipline the hedge fund industry.