COO Connect Editorial: Interview with Phillip Chapple, Executive Director at KB Associates about hedge funds and counterparty risk:

• Are hedge funds becoming complacent when it come to counterparty risk?
• What are you telling your hedge funds to do?
• Many smaller funds are opting for mini-primes. Do you think this is a model which has much of a future?
• Investors do have concerns about the risks associated with miniprimes. Is this something you agree with?
• What are investors looking at in terms of counterparty risk between hedge funds and their prime brokers?
• Many sophisticated investors are demanding fee concessions while simultaneously pressuring managers to use multiple counterparties. How do managers get the balance right?
• What are the main benefits of the different types of prime custody models?
• What are the cost implications of prime custody for hedge funds?