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Spenner welcomes FoHF code of conduct
Moves toward greater disclosure in the fund of hedge funds (FoHF) space are likely to gather pace ahead of new legislation being considered by the European Commission to increase regulation.
Morten Spenner, chief executive of International Asset Management and fund manager of Alternative Investment Strategies, welcomed recent moves by hedge fund and FoHF trade body Aima to introduce a code of conduct.
Moves by the trade body to introduce a set of standards could help tempt investors back to a sector that has been maligned by media and politicians over the past year, he said.
"We would love more confidence to come back to the sector, but we also recognise it has to be earned with respect to hedge funds and FoHFs," he said.
He said fund managers were beginning to tap into an investment environment where investors wanted more information on underlying holdings and fees.
"As far as we understand, fund managers are willing to engage in constructive dialogue and share more information than they have before."
But Mr Spenner said that, while greater disclosure was to be welcomed, there needed to be more clarity over how the sector would be regulated.
"There has been some debate on whether the sector should be regulated on a global level or a European level," he said.
"It would be great if it were done on a global level, but the process could take too long. It could also lead to something much more draconian, and that is not in anybody's interest."
