As institutional investors such as the BT Pension Scheme fight
for the proper governance of hedge funds, the multiple (and
often conflicted) directorships prevalent in the industry are
now under the spotlight.
"Reports that some non-executive hedge fund directors in the
Cayman Islands are sitting on more than 100 boards each is a
concerning revelation for investors. By holding so many jobs,
it is a fantasy for any director to think they can perform
their fundamental duty of protecting investor interests," said
Meziane Lasfer, professor at the Cass Business School.
"First, the directors are unable to accomplish the crucial
monitoring role they should play in ensuring funds are
performing well and generating good...