The hedge fund subcommittees of the President's Working Group on Financial Markets are expected to jointly release best practices recommendations within the next two months.
The hedge fund committees have been working on the voluntary industry standards since September and are hoping to solicit significant comment from the investment industry, said Russell Read, chairman of the investors' committee.
Not only are we trying to provide the very best practices recommendations, our goal is to have those practices be accepted by both investors and hedge fund managers and perhaps most importantly, to have those recommendations become common practice throughout the industry, Mr. Read said in an interview.
Mr. Read knows a fair amount about hedge fund investing through his day job as chief investment officer of the $237.5 billion California Public Employees' Retirement System, Sacramento, which has a $7 billion hedge fund portfolio.
Eric Mindich, chief executive officer of hedge fund Eton Park Capital Management LP, New York, chairs the manager committee. Mr. Mindich declined to comment.
Mr. Read said he couldn't discuss specifics of the work of the two committees but noted that he was pleasantly surprised by their relatively similar recommendations. There was potential for conflicts between the two committees between what hedge fund managers and investors want but I was surprised by the commonality of what prudent investing means. This effort has offered institutional investors and hedge fund managers a chance to cooperate on establishing best practices. The timing was very good considering how much is being invested in hedge funds by institutions, Mr. Read said.
The two best practices documents will be available on the website of the U.S. Department of the Treasury at http:// www.ustreas.gov, said Jennifer Zuccarelli, a department spokeswoman. Ms. Zuccarelli said the date has not been set for the release of the recommendations and the start of the 90-day public comment period.
Contact Christine Williamson at [email protected]