Hedge Fund Best Practices / Guides to Sound Practices

• The Hedge Fund Matrix
  The Hedge Fund Matrix is a joint initiative of the following organizations:

• Alternative Investment Management Association (AIMA) 
• Hedge Fund Standards Board (HFSB)
• International Organization of Securities Commission (IOSCO)
• Managed Funds Association (MFA)
• Asset Managers' Committee of the U.S. President's Working Group on Financial Markets (US PWG)

The Hedge Fund Matrix's primary objective is to offer a first step towards the harmonization of existing hedge fund industry sound practices to all stakeholders - specifically hedge fund industry practitioners, institutional investors, policy makers and regulatory authorities.

See Section E: Hedge Fund Structure and Organization: The topics addressed in Section E include the structure of a hedge fund, with guidance on setting up a hedge fund with independent service providers, board of directors, etc. The topics also include selecting and monitoring independent service providers, such as prime brokers and administrators.

See http://www.hedgefundmatrix.com/en/publications.cfm for details of various publications on recommended sound practices for hedge fund managers, which address a broad range of investment and operational issues. Note that all of the publications address the issue of the structure of a hedge fund, independent service providers and other hedge fund operational issues.

• Alternative Investment Management Association (AIMA):
  Guides include:
• Guide to Sound Practices for European Hedge Fund Managers (May 2007)
• Guide to Sound Practices for Hedge Fund Valuation (Feb 2007)
  
  Note on AIMA "Guides to Sound Practice": Over the past few years AIMA has published numerous "Guides to Sound Practices" for hedge fund managers globally, including for Canadian hedge fund managers. These "Guides to Sound Practices" have also been published on a wide range of issues including a fund director's guide, hedge fund business continuity guide, guide to media relations, etc. (Also, see below re AIMA due diligence questionnaires).
• Hedge Fund Standards Board (HFSB):
• Hedge Fund Standards: Final Report (January 2008)
• International Organization of Securities Commissions (IOSCO):
• Principles for the Valuation of Hedge Fund Portfolios (November 2007)
• Managed Fund Association (MFA) (US focused organization):
• Sound Practices for Hedge Fund Managers (2009)
• President's Working Group on Financial Markets:
• Asset Managers' Committee Report: Best Practices for the Hedge Fund Industry (April 2008)