Friday, 29 August 2014
Last updated 9 hours ago
May 31 2011 | 9:19am ET
Several major institutional investors are spelling out what they want from hedge funds in black and white.
The Alternative Investment Management Association today published a guide setting out what that all-important client class expects from its hedge fund managers. And that includes skin in the game, strong corporate governance and risk management, and, in light of the recent scandals in the U.S., measures to prevent insider trading.
Contributors to the guide—described as a reference on "institutional investors' views and preferences" and not as a set of demands—include the California Public Employees Retirement System, Albourne Partners, British Airways Pension Investment Management, Union Bancaire Privée and the Universities Superannuation Scheme. CalPERS hedge fund chief Kurt Silberstein covered hedge fund managers' investment in their own funds.
"It is important that a significant amount of a hedge fund manager's (including the senior team) wealth is invested in the fund(s) that the firm manages," Silberstein wrote. "If the investor does not feel that the hedge fund manager has enough of its own capital invested in the fund, the hedge fund manager should be expected to reinvest a portion of the performance fees in the hedge fund."
Albourne's Adrian Sales, meanwhile, warned that hedge funds should be careful in their dealings with expert networks, currently at the center of a major U.S. Justice Department investigation.
"Staff that work with such consultants should receive special training and compliance should undertake extensive surveillance (e.g., looking for trading spikes, reviewing trade volume around news releases, e-mail searches and recording of telephone calls)," he wrote.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...