# kaal:claim:3405660-024

**Claim.** Any risk assessment of hedge funds as counterparties is necessarily incomplete, because there is no common measure for calculating leverage and exposure and because fund trading strategies are dynamic.

**Type.** failure  **Support.** argued

**Source quote.**

> The absence of a common measure with which to calculate leverage and exposure and the dynamic nature of hedge funds ́ trading strategies is just one example that shows the incomplete nature of any risk assessment of hedge funds as counterparties.

**From.** Kaal, *Indirect Regulation of Hedge Funds* (2019), IV. Indirect Regulation, page 19

**Cite as.** Kaal, Indirect Regulation of Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3405660

**Verify.** sha256 of source PDF `cf507b1833071765bc13a5605f38c2591582eca85f40869e38b6ff075c04d29d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Indirect%20Regulation%20of%20Hedge%20Funds.pdf

**Failure mode.** no common leverage measure  (family: measurement-and-metric-failure)

**Topics.** research-methods, risk-and-incentives

**Keywords.** leverage-measurement, counterparty-risk, trading-strategies, indirect-regulation

**Related claims.**

- extends: https://wulfkaal.github.io/claims/2714974-026
- extends: https://wulfkaal.github.io/claims/2714974-027

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.