More HFs outsourcing valuation, E&Y finds


Due to greater investor scrutiny and demand for transparency, a growing number of hedge funds are focusing on their valuation processes, according to accounting firm Ernst & Young.

E&Y research on larger global hedge funds found that about half now utilise an independent valuation firm in their valuation processes. As managers handle differences in regulatory status and frequency of investor activity, there have traditionally been varying levels of sophistication among hedge fund managers with respect to valuing their portfolios.

New accounting rules, however, and increased investor scrutiny means that more firms have been taking steps to bolster their