Hedge fund working group to review best practice

A working group of 13 primarily UK-based hedge funds is to review best practice in the industry and examine the possibility of industry-wide standards.

The group, headed by MW Tops chairman and former deputy governor of the Bank of England Andrew Large, will examine issues such as valuation, disclosure and risk management. Existing principles, standards and guidelines will be evaluated, areas which may require strengthening are to be identified and solutions may be suggested that could include adherence to voluntary standards. As Large commented: “There already exist guidelines and principles in the UK and internationally, which we will look at as part of the review. However, there may be areas that require strengthening. If so, we will propose solutions aimed at improving standards across the industry.”

The working team comprises: Nagi Kawkabani, chief executive of Brevan Howard; Klaus Jäntti, chief executive of Brummer & Partners; Bernard Oppetit, chief executive of Centaurus Capital; Stuart Fiertz, president of Cheyne Capital; Michael Hintze, chief executive of CQS; Jeffrey Meyer, chief executive of Gartmore; Manny Roman, co-chief executive of GLG; Paul Ruddock, chief executive of Lansdowne Partners; Rob Standing, founding partner of London Diversified; Stanley Fink, deputy chairman of Man Group; Paul Marshall, chairman of Marshall Wace; Michael Cohen, managing partner of Och-Ziff Capital Management and Michael Alen-Buckley, chairman of RAB Capital.

The initiative has also attracted support from other hedge funds, and from the UK Alternative Investment Management Association.