Hedge Fund Governance

Hedge Fund Governance

Author: Houman B. Shadab

Publisher:

ISBN: OCLC:1308952290

Category:

Page: 62

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This Article provides the first comprehensive scholarly analysis of the internal governance of hedge funds. Hedge fund governance consists of the funds' underlying legal regime and the practices they adopt in response to lacking permanent capital and to reduce agency costs. Hedge fund governance is important because better governance can improve investor returns and help managers raise and retain capital. I argue that hedge fund governance is best understood as a type of responsive managerialism. It is a type of managerialism because applicable law and contracting structures give managers uniquely wide-ranging control over the fund and its operations. Hedge fund governance is also uniquely responsive, however, because managers must continually satisfy investors, due to their ability to shut down a fund by withdrawing their capital.In addition to their underlying legal regime, the primary components of hedge fund governance are investors with a strong propensity to exercise their short-term redemption rights, managers with high pay-performance sensitivity, investor demand for quality governance, and close monitoring by short-term creditors and derivatives counterparties. On balance, hedge fund governance devices seem to prevent managers from pursuing their own interests at the expense of investors. Nonetheless, there is still plenty of room for hedge fund governance to improve. Accordingly, this Article provides a normative framework and principles for improving hedge fund governance by striking a better balance between governance devices that are investor-friendly and those that empower managers. My analysis suggests that the areas in which hedge fund governance needs the most improvement are performance reporting (valuation) and the timing of performance-fee calculations. Importantly, my analysis also suggests that investors may benefit from less disclosure, higher fees, and less access to their capital.
Hedge Fund Governance
Language: en
Pages: 62
Authors: Houman B. Shadab
Categories:
Type: BOOK - Published: 2014 - Publisher:

This Article provides the first comprehensive scholarly analysis of the internal governance of hedge funds. Hedge fund governance consists of the funds' underlying legal regime and the practices they adopt in response to lacking permanent capital and to reduce agency costs. Hedge fund governance is important because better governance can
Hedge Fund Governance
Language: en
Pages: 384
Authors: Jason Scharfman
Categories: Business & Economics
Type: BOOK - Published: 2014-10-22 - Publisher: Academic Press

Hedge Fund Governance: Evaluating Oversight, Independence and Conflicts summarizes the fundamental elements of hedge fund governance and principal perspectives on governance arguments. An authoritative reference on governance, it describes the tools needed for developing a flexible, comprehensive hedge fund governance analysis framework. Case studies and interviews with professional fund directors
The Fundamentals of Hedge Fund Management
Language: en
Pages: 304
Authors: Daniel A. Strachman
Categories: Business & Economics
Type: BOOK - Published: 2012-05-23 - Publisher: John Wiley & Sons

Updated edition of the book that gives investors, advisors, and managers the tools they need to launch and maintain a hedge fund in today's economy The hedge fund industry has gone through dramatic changes in recent years. Investors of all types continue to want to place their assets into these
Hedge Fund Compliance
Language: en
Pages: 208
Authors: Jason A. Scharfman
Categories: Business & Economics
Type: BOOK - Published: 2016-12-19 - Publisher: John Wiley & Sons

The long-awaited guide for modern hedge fund compliance program development Hedge Fund Compliance + Website provides straightforward, practical guidance toward developing a hedge fund compliance program, drawn from the author's experience training financial regulators, consulting with government entities, and analyzing hedge fund compliance structures across the globe. In-depth explanations of
Hedge Fund Regulation and Fund Governance
Language: en
Pages: 68
Authors: Colleen Honigsberg
Categories: Business & Economics
Type: BOOK - Published: 2019 - Publisher:

This paper uses three alternating changes in hedge fund regulation to study whether regulation reduces hedge funds' misreporting, and, if so, why regulation is effective. Relative to public companies, hedge fund regulation is relatively light. Much of the regime is a “comply-or-explain” regime that allows funds to forego compliance with