Aima revises sound practice recommendations for hedge fund managers
The Alternative Investment Management Association has published its revised Guide to Sound Practices for European Hedge Fund Managers, first issued in 2002, which examines 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, which both originated and dedicated significant resources to the project. The working party comprised leading European hedge fund and fund of hedge funds managers, prime brokers, fund administrators and legal and auditing professionals.
According to Aima, the guide reflects the practical issues which any well-run business in the hedge fund sector should strongly consider, including creating and managing a hedge fund business, the investment process and portfolio risk management, portfolio administration and operational controls, raising capital and investor relations, and hedge fund structures and organisation.
Says Aima executive director Florence Lombard: 'Since Aima's inaugural Sound Practices Guide was published five years ago, the European hedge fund industry has grown dramatically from USD64bn to more than USD450bn today.
'The industry has also evolved in terms of investment techniques, strategies, financial instruments used, and the way in which the industry is regulated. This updated guide reflects these significant developments and seeks to provide guidance on the additional matters that 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 web site more than 90,000 times. The guide, which can be downloaded at www.aima.org/uploads/GuidetoSoundPracticesforEuropeanHFMMay2007.pdf, forms part of an integral body of work that Aima has produced over several years and which, taken together, sets out sound practices for the wider hedge fund industry.
The other publications in this series are the Guide to Sound Practices for Hedge Fund Valuation (March 2007), the Guide to Sound Practices for Hedge Fund Administrators (September 2004), and the Offshore Alternative Fund Directors' Guide (June 2005).
Aima has more than 1,100 corporate members worldwide based in 47 countries including managers of hedge funds and funds of hedge funds, prime brokers, providers of legal and accounting services and fund administrators.
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