Sun, Dec 11, 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. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg

  2. Opalesque Roundtable: Australian family offices search for good risk adjusted returns, happy to pay for skill[more]

    Komfie Manalo, Opalesque Asia: Australian family offices want foremost good risk adjusted returns, and they are happy to pay for the skill, and in some cases, the limited capacity of an active manager. Jonas Daly, Head of Distribution at B

  3. StepStone announces close of Swiss Capital acquisition[more]

    StepStone Group LP announced it has successfully closed the acquisition of Swiss Capital Alternative Investments AG, one of the leading private debt and hedge fund solutions providers in Europe. The transaction was originally announced in May 2016, and has been in the process of receiving regulatory

  4. Investing - Stephen Cohen investing $275m in free clinics treating veterans' mental health issues, California Resources loses favor with hedge funds[more]

    Stephen Cohen investing $275m in free clinics treating veterans' mental health issues From Healthcarefinancenews.com: …Now, a new chain of free mental health clinics for vets has opened in five cities across the United States to fill the gap. The much-needed new treatment is underwritten

  5. Hedge funds flat in last week of November 'in sympathy with markets’[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were close to flat in the last week of November in sympathy with markets, which took a pause ahead of the OPEC meeting and Italian referendum. The Lyxor Hedge Fund Index was -0.1% as of end November 29 (-1.7% YTD), according to the latest