The Managed Funds Association put together a Model Due Diligence Questionnaire for Hedge Fund Investors (.pdf). This questionnaire was designed to identify the kinds of questions that a potential investor may wish to consider before investing in a Hedge Fund. The questions that may help amplify on or provide additional details to the disclosure in a Hedge Fund’s offering documents.
Tag: MFA
Sound Practices for Hedge Fund Managers
The Managed Funds Association updated its Sound Practices for Hedge Fund Managers (.pdf) in November, 2007 in response to the initial drafts of the President’s Working Group on Financial Markets.
The objectives of Sound Practices are to:
- Strengthen business practices of the hedge fund industry through a strong framework of internal policies and practices
- Encourage individualized assessment and application of recommendations
- Enhance market discipline in the global financial marketplace
Sound Practices, which was originally published in 2000 and is now in its fourth edition, provides peer-to-peer recommendations for establishing standards of excellence in virtually every aspect of business. The recommendations included in Sound Practices are divided among the seven topics listed below:
- Management, Trading, and Information Technology Controls
- Responsibilities to Investors
- Determination of Net Asset Value
- Risk Management
- Regulatory Controls
- Trading Relationship Management, Monitoring, and Disclosure
- Business Continuity, Disaster Recovery, and Crisis Management