Mon, Sep 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Sound Fund Advisors examines SEC data on hedge fund directors, shows US fund governance lags UK, EU

Wednesday, February 27, 2013

Bailey McCann, Opalesque New York: A new whitepaper from Sound Fund Advisors looks at current practices on hedge fund governance through an examination of calendar-year 2012 data from the SEC on over 2000 hedge funds. The paper includes a number of notable findings, such as 26% of funds have no external directors, and 14% have the highest risk profile -- no external directors and only one or two internal directors. US hedge funds also continue to lag their European counterparts in terms of overall governance practices.

The report notes that 2012 data did show some improvement over what was submitted in 2011, however, that still sets a low bar. Larger funds are avoiding some of the more troublesome board configurations, but they still lag behind international funds. Only 35% of US funds have split boards, which the report says are more independent, versus 72% in the UK and EU.

Jumbo directors, or directors who serve on hundreds of boards still continues to be a big trend in the US, despite negative press, and investor reports. 2012 data shows the top 30 jumbo directors likely sit on more than 100 each, and the top 3 likely sit on more than 400 each. This is especially true for Cayman funds which have a 60% probability of including one of these jumbo directors.

Cayman funds are also out of alignment with investors in terms of the background most directors have. Th......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali