Holding the Key: Firms Face Key Man Risk

Key-man risk is nothing new, but failing to take heed of it can lead to disastrous consequences. It has proven particularly troublesome for hedge funds, because performance—in shareholder eyes at least—is often inexorably linked with the presence of a star trader. Jupiter Asset Management, for example, recently admitted that just four individuals are responsible for 38 percent of its assets under management, according to London-based finance-focused tabloid, City A.M. It doesn’t take a risk