SEC Increases Scrutiny of Valuation of Alternative Fund Investments
A recent Wall Street Journal article highlights that the U.S. Securities and Exchange Commission and other regulators are increasing scrutiny of how alternative funds, including hedge funds, value their investments in illiquid holdings, noting that unscrupulous fund managers may falsely inflate values. As the primary regulator of the managed fund (i.e., hedge fund) industry, the […]
Houlihan Capital Discusses Valuation and Fund of Funds
Pursuant to both AIMA’s Guide to Sound Practices for Hedge Fund Valuation and AIFMD, the Manager of a Fund-of-Funds (“FoF”) is required to ensure that appropriate and consistent procedures are in place for the valuation of Fund assets on at least an annual basis. Best practice and regulations relating to valuation measures to be implemented […]
Andrew Smith releases article discussing Investor Demands are Driving Valuation Best Practices and Transparency
Investors have clearly signaled that they will invest only with fund managers that have implemented valuation best practices and are providing adequate transparency and disclosures. This trend will only grow stronger as regulators, auditors, fund administrators, and other fiduciaries endeavor to meet the demands of their stakeholders. The insatiable need of investors to generate returns […]
AIFMD – Professional Guarantee Requirement of External Valuer
With the Alternative Investment Fund Managers Directive (“AIFMD”) having entered into force on July 22, 2013, Alternative Investment Fund Managers (“Managers”) are now responsible for establishing and maintaining appropriate procedures concerning the valuation of assets in the Alternative Investment Fund (“Fund”). In addition, written valuation policies and procedures must be established to clarify valuation methodologies […]
SEC Enforcement Action Against Former Oppenheimer Manager
On August 20, 2013, Federal securities regulators accused Brian Williamson, a former portfolio manager at Oppenheimer & Company (“Oppenheimer”), of misleading investors about the performance of a private equity fund-of-funds. These allegations follow on the heels of an announcement in March of 2013 that Oppenheimer had agreed to pay approximately $3.0 million to the Securities […]