Central bankers have never had a comfortable relationship with hedge funds, and valuable lessons have been learned over the years with risk systems improved and controls tightened, according to an editorial by Andrew Rozanov, senior manager at State Street Global Advisors in the Wall Street Journal . However, the number of hedge funds and the amount of assets they control have risen significantly while the strategies they employ have become more complex and dynamic.

Arguably, the pace of hedge fund growth and innovation has outstripped the ability of central banks and regulators to keep up.

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