Fri, Apr 29, 2016
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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Performance - Blackstone profits plunge 77% as performance fees dive, Hedge fund stars' fortunes hostage to market swings, Hedge fund manager goes from billionaire to millionaire in profits plunge, Hedge funds biggest losers in SunEdison's 'magic money machine'[more]

    Blackstone profits plunge 77% as performance fees dive From FT.com: Blackstone, the world’s biggest manager of alternative investments from private equity to real estate, suffered from sharply lower performance fees amid turbulent markets in the first three months of the year, even as it

  3. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  4. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  5. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the