Two private-sector Committees call for hedge funds to improve disclosure and risk management, recommending that hedge funds produce GAAP-compliant financial statements, and provide investors with annual and quarterly reports. The reports are said to be consistent with Britain’s Hedge Fund Working Group recommendations and provide guidance evaluating the appropriateness of hedge funds as a component of an investment portfolio.
The AMC report calls on hedge funds to adopt comprehensive best practices in all aspects of their business, including the critical areas of disclosure, valuation of assets, risk management, business operations, compliance and conflicts of interest.
The IC report addresses the decision to invest in hedge funds and the management and oversight of hedge fund investments providing a Fiduciary’s Guide and an Investor’s Guide. The Fiduciary’s Guide provides recommendations to individuals charged with evaluating the appropriateness of hedge funds as a component of an investment portfolio. The Investor’s Guide provides recommendations to those charged with executing and administering a hedge fund program once a fiduciary has decided to add hedge funds to the investment portfolio.
The recommendations will be open for public comment for 60 days. The committees then will review and, as necessary, revise these best practices and standards.
Press release
Remarks Paulson
AMC report - Summary
AMC report on Best Practices
IC report - Summary
IC report on Best Practices
© Graham Bishop
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