You heard it here first: corporate governance
will be the next big issue to hit hedge funds. The industry is
wide open to criticism on this front. Word to the wise - jump
on the bandwagon early, because soon you will be hearing about
it from institutional investors and regulators.
For hedge funds, corporate governance usually translates to
the following: Is there any independent oversight of a fund,
and is there any internal or external oversight and standards
in important areas such as valuation of assets? Usually this
boils down to whether a fund has a board, and whether that
board has independent directors. Another issue - does a hedge
fund have a compliance structure and procedures that provide
genuine checks and balances to the gunslingers out on the
When it comes to corporate governance, hedge funds are
clearly still in the Dark Ages. Most hedge...