Hedge industry needs trimming

It seems lost in the mists of market meltdown now, but hedge funds were widely blamed at the start of the financial crisis for practices that triggered the collapse.

Since then, the industry has closed ranks but now feels secure enough to accept a degree of criticism. A White Paper reviewing the role of non-executive directors in the hedge fund industry has found significant failings in the services provided. The document, published by independent consultant HedgeDirector, claims directors of offshore hedge funds are frequently ‘under-qualified’ and ‘over-stretched’, and says they fail to deliver an adequate standard of governance. The report recommends hedge fund investors become more vocal and insist on professional standards of oversight from t...