New AIMA guide aims to ramp up professionalism in the FoHF industry

Fri Jun 5, 2009

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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 stakeholders.

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, nor is...

ISSN: 2151-1845 / CDC10004H

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