A group of London’s biggest hedge funds – managing between its members some $180bn – has drawn up plans for the first voluntary industry code of conduct. Hoping to fend off pressure from Germany and the G8, the London group has set out three main proposals: disclosure of holdings of complex, hard-to-value securities, and the methods used to value them; clear risk management plans, including plans to address liquidity risk; and clear policies on conflicts between investors and managers. Hedge funds will be expected to follow a “comply or explain” policy. The group also called for rules so companies could identify hedge funds holding stakes in companies via derivatives and voting blocs where funds have no economic interest.

This entry was posted by Sam Jones on Thursday, October 11th, 2007 at 5:12 and is filed under Capital markets, Hedge funds. Edit this entry.