British Hedge Fund Group Suggest Best Practices

Oct 11 2007 | 7:47am ET

Hedge funds should improve transparency and risk management, a British working group that includes top hedge fund executives has recommended.

The initiative, designed to become the basis of a voluntary code of conduct for hedge fund managers, specifically calls for making more information about hedge fund firms public and improving disclosures to banks and clients.

The group, which is headed by former Bank of England deputy governor and current Marshall Wace hedge fund chairman Andrew Large and includes 14 top executives, is calling on hedge funds to better evaluate how they value assets, improve efforts to inform clients about illiquid holdings, and disclose all conflicts of interest in the valuation process.

The group advises that hedge funds should not vote with borrowed shares, or where they have no underlying economic interest in a company, and they should improve risk management to “cope with unexpected events and stressed.” It also calls on regulators to require all investors to disclose derivative holdings.

The working group includes representatives from Cheyne Capital Management, Gartmore, GLG Partners, Man Group and Och-Ziff Capital Management.

“Disclosure gives investors and stakeholders the information they need to make better-informed decisions,” Large said. “We make no pretense in reinventing the wheel, and most hedge funds are already following these best practices, but there will be a leveling up to the highest standards.”


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.