New AIMA guide aims to ramp up professionalism in the FoHF industry
Fri Jun 5, 2009
Despite the bad press the industry has received, hedge funds still offer attractive risk-adjusted returns. Now a new guide offers a roadmap for better practice in funds of hedge funds
Key steps to setting up a fund of hedge funds
Investment process and risk management
Admnistration and operations
Raising capital and investor relations
Fund structures and governance
As funds of hedge funds will continue to be the
backbone investment vehicle to hedge funds for at least half
the hedge fund industry, the crises of the past two years have
highlighted the need for the professionalisation of the
business. For this reason, the Alternative Investment
Management Association (AIMA) has published The Guide to Sound
Practices for Funds of Hedge Funds Managers - aimed at,
primarily, investors, managers, advisers and other
In the guide, AIMA sets out clear recommendations for sound
practices in the following areas: creating and managing a fund
of hedge funds business; investment process and portfolio risk
management; administration and operations; raising capital and
investor relations; and fund structures and governance.
The guide is not intended to set out definitive standards,
ISSN: 2151-1845 / CDC10004H
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