Corporate Governance Practices Within The Hedge Fund Industry

Corporate governance practices for hedge fund firms are more closely examined today than at any other time in the history of the industry, hedge funds firms have experienced a shift in their investor composition from High Net Worth individual investors to institutional investors. Institutional investors have shown that they view the evaluation of governance and oversight as it relates to risk management, valuations, operational controls, transparency and the investment process as important as analysing a hedge fund manager's investment performance.'

Although many of the principles relating to a directors duties and responsibilities to a Fund are already enshrined in law, it is clear that this is a changing and evolving model in the fund universe. The idea behind the introduction of the Corporate Governance Code for Gibraltar Funds is to more specifically define, codify and develop this framework over time.