Principles and best Practices for Hedge fund investor

Investors are requiring more timely, robust and transparent information from the fund managers.  For an investor to confidently contribute to a fund, the trend is not only performance but transparency of information.

All funds supply investor, information, but at a minimum, the investor package should include: extracted from the president’s working group on Financial markets issued white paper on “Principles and best Practices for Hedge fund investors”

• ·         Long and short positions by geographic regions or strategy, including hedges
• ·         Most significant "winners and losers"
• ·         Assets under management (by fund)
• ·         Portfolio statistics (i.e., turnover, long positions, short positions, etc.)
• ·         A statement of the investor’s investment in the hedge fund, a letter discussing performance, and a report of the performance net of fees and expenses 
• ·         A statement of the asset valuations for any period in which the hedge fund manager received performance-based compensation and the percentage allocation of FAS 157 Level 1, 2, and 3 categories and Tax exposure for the investors