Wed, Sep 3, 2014
A A A
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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the study

  2. Legal – GE Capital and Petters-related hedge fund in legal battle, SEC sanctions Donald Brownstein's hedge fund over conflicts of interest[more]

    GE Capital and Petters-related hedge fund in legal battle From Startribune.com: A billion-dollar legal battle is brewing in Florida over who knew what and when about the decade-long Ponzi scheme operated by former Wayzata businessman Tom Petters. The bankruptcy trustee for two failed Flo

  3. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  4. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius