By: Conrad G. Bahlke and Brian Fortune
This article was originally published in the SR&Z Spring 2000 issue of Investment Management Developments.
On February 7, 2000, a group of five of the largest hedge fund managers (the "Hedge Fund Group") issued a report, "Sound Practices for Hedge Fund Managers," containing recommendations for hedge fund managers in the wake of market events in the summer and fall of 1998 (the "Report"). The Hedge Fund Group, consisting of representatives of Caxton Corporation, Kingdon Capital Management, LLC, Moore Capital Management, Inc., Soros Fund Management LLC and Tudor Investment Corporation, made 34 recommendations intended to enhance market stability by strengthening hedge fund management and reducing the risk of default or failure. The recommendations were divided into four major sections addressing: (1) the responsibilities of senior management; (2) risk measurement and monitoring; (3) disclosure; and (4) documentation and other legal and
