Sun, Nov 19, 2017
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. Middle East - Saudi-Iran war would create this domino effect of global disaster, Saudi billionaires said to move funds from region to escape asset freeze[more]

    Saudi-Iran war would create this domino effect of global disaster From CNBC.com: Events appear to be spinning out of control in the Middle East, and the threat a Saudi-Iranian war is looking increasingly credible. Make no mistake, an out and out conflict between the two nations would be

  2. Paradise Papers - Robert Mercer's effort to avoid taxes appears in Paradise Papers, Tycoon made $41m from 'people's fund', Oxford and Cambridge 'investing millions of pounds offshore', Paradise Papers reveal[more]

    Robert Mercer's effort to avoid taxes appears in Paradise Papers From Therealnews.com: The Guardian has reported that conservative billionaire and Trump backer Robert Mercer "appears as a director of eight Bermuda companies in the Paradise Papers," the trove of documents reviewed by the

  3. Wall Street hedge fund veteran hits highs with copycat tactics[more]

    From FNLondon.com: A Wall Street veteran who has made big returns for wealthy clients by piggybacking on the strategies of well-known hedge funds is taking his novel approach to stock-picking to institutional clients. Dixon Boardman, chief executive of $2.5bn fund of hedge funds Optima Fund Ma

  4. Launches - Eaton Vance, Oaktree to launch diversified credit NextShares fund, FIM launches Nordic AI-powered fund[more]

    Eaton Vance, Oaktree to launch diversified credit NextShares fund Eaton Vance Management, a subsidiary of Eaton Vance Corp., announced the expected mid-November launch of Eaton Vance Oaktree Diversified Credit NextShares, a new Eaton Vance-sponsored exchange-traded managed fund. Eaton Va

  5. Outlook - Gundlach's stock market warning comes true[more]

    From Bloomberg.com: Jeffrey Gundlach has been warning something's got to give. Based on the past two days, looks like we have our answer. Stocks fell around the world a second day and high-yield bonds headed for a fourth straight loss, resuming a historic correlation that the hedge fund manager on W