AIMA Publishes Guide To Sound Hedge Fund Management

Investors Offshore, London

05 September 2002

The Alternative Investment Management Association ("AIMA") and leading industry participants in the European hedge fund industry have published a "Guide to sound practices for European hedge fund managers". The guide considers various practical aspects of establishing and managing a hedge fund business in Europe and suggests corresponding sound practices.

AIMA says that with the rapid growth in recent years and strong indications of future growth in the hedge fund industry it is important for new entrants to establish their organisations as viable business entities. The guide is designed to help them manage all the business risks involved at the start of the business and throughout its life. It is also intended to be a reference guide for established hedge fund managers.

Hans-Willem van Tuyll, Chairman, the Alternative Investment Management Association said,"Like any growing industry, we all owe much to those who have the foresight and dedication to create valuable tools for the assistance of all participants. AIMA would like to thank Goldman Sachs International for co-ordinating and leading this project and all those who assisted in its production."

Segun Aganga, head of hedge fund consulting, Goldman Sachs Prime Brokerage and the co-ordinator of the project said, "The guide will help new entrants to the hedge fund industry and existing managers to adopt sound business practices, better weather market conditions and more importantly reduce the risks of costly mistakes. The guide allows them to benefit from the sound practices and experience of other well established and successful hedge fund managers and industry participants."

The guide covers the following key topics:

• Creating and managing a hedge fund business;
• Investment process and portfolio risk management
• Portfolio administration and operational controls
• Raising capital and investor relations
• Hedge fund structures and organisation

The Alternative Investment Management Association is a not-for-profit, international trade association whose objectives are to increase investor education, transparency and promote due diligence and related best practices, and to work closely with regulators and interested parties in order to better promote and control the use of alternative investments.

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