MFA updates sound practice guidelines


The Managed Funds Association, the industry body representing alternative investment managers, announced a set of new guidelines for hedge fund managers on Monday in response to a call by the President’s Working Group on Financial Markets’ for improved market discipline and enhanced vigilance.

The MFA’s revised Sound Practices for Hedge Fund Managers, in its fourth iteration since its initial publication in 2000, includes “updated and expanded guidance on valuation, risk management and responsibilities to investors.”

Sound Practices now includes a due diligence questionnaire to help investors assess hedge funds prior to investing. It addresses risks, such as the valuation of