Sat, Nov 28, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

An independent, active board is the ideal business model for hedge funds

Thursday, August 15, 2013

Komfie Manalo, Opalesque Asia for New Managers:

An independent and active board that demands full transparency, is an ideal business model for hedge funds to achieve balanced corporate governance, said Eli Combs, the Founder and President of Connecticut-based hedge fund,Meehan Combs. Combs made the statement during the latest Opalesque Connecticut Roundtable.

"We have a truly independent and active board which is unique, we think, among hedge funds," he said, adding, "they are locally based, and they have the right to see full transparency into the portfolio. They also have the right to fire us as a manager of the fund, which you don’t see in any hedge fund, but which should be an aspect of every hedge fund. You see it in mutual funds, it is common in the mutual fund world, but it is very uncommon in the hedge fund world."

Combs added that their board of trustees can fire managers at any sign of bad behavior. In that instance, the board could opt to turn management of the portfolio over to BlackRock, which serves as the firm’s cornerstone investor.

He cited the case of beleaguered hedge fund SAC Capital, noting investors would not have suffered the same fate if and independent board structure was in place. "Their board would have shut them down, taken their equity portfolio, given it to someone like Goldman Sac......................

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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November