HFWG sets up voluntary code of conduct for hedge funds

Working Group publishes industry code on areas such as governance, disclosure and valuation. By Aimee Savage

The Hedge Fund Working Group has set up a board to deal with valuation and risk management standards as part of a voluntary industry code of conduct. The code, released on 22 January, looks at five key areas: governance, disclosure, valuation, risk management and activism. Among the major recommendations are for groups to adopt an independent process for valuing portfolios, as well as robust governance to deal with conflicts of interest between managers and investors. The report also proposes enhanced disclosure to investors and that managers implement a comprehensive framework to man...