Although hedge fund associations are rejecting calls for an industry code of
practice, the Alternative Investment Management Association (AIMA) this week
published its revised Guide to Sound Practices for European Hedge Fund Managers.
The Guide - originally published in 2002 - considers various practical aspects
of establishing and managing a hedge fund business in Europe and recommends
corresponding sound practices. It is intended to be a practical business tool
for hedge fund managers, and to provide relevant and insightful information
for the investor and regulatory community, and to all those servicing and providing
professional advice to the hedge fund industry.
The revised Guide was developed and overseen by a 30-strong industry working
party, with a central role played by Goldman Sachs Prime Brokerage who both
originated and dedicated significant resources to the project. The working party
comprised leading European Hedge Fund and Funds of Hedge Fund Managers, prime
brokers, fund administrators, legal and auditing professionals. The Guide reflects
the practical issues which any well-run business in the hedge fund sector should
strongly consider.
The Guide covers the following key issues:
- Creating and Managing a Hedge Fund Business
- Investment Process and Portfolio Risk Management
- Portfolio Administration and Operational Controls
- Raising Capital and Investor Relations
- Hedge Fund Structures and Organisation
Florence Lombard, Executive Director of AIMA commented: “Since AIMA’s
inaugural Sound Practices Guide was published five years ago, the European hedge
fund industry has grown dramatically from US$64 billion to over $450 billion
today. The industry has also evolved in terms of investment techniques, strategies,
financial instruments used and, indeed, the way in which the industry is regulated.”
“This updated Guide reflects these significant developments and seeks
to provide guidance on the additional matters which a hedge fund manager should
take into account now.”
Since the ‘Guide to Sound Practices for European Hedge Fund Managers’
was first published in 2002, it has been downloaded from the AIMA website over
90,000 times. The new version of the Guide can be downloaded from the AIMA website
at www.aima.org/uploads/GuidetoSoundPracticesforEuropeanHFMMay2007.pdf.
AIMA, the Alternative Investment Management Association, has over 1,100 corporate
members worldwide, based in 47 countries. Members include leading hedge fund
managers, fund of hedge funds managers, prime brokers, legal and accounting
services and fund administrators.
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