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Portfolio > Alternative Investments > Hedge Funds

Hedge Fund Organization Issues Guide to Asian Managers

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LONDON (HedgeWorld.com)–The Alternative Investment Management Association adapted its guide to hedge fund management to Asian hedge fund managers in its latest iteration in its “Guide to Sound Practices” series.

The 34-page document gives a thorough overview of hedge fund management, investor relations and start-up advice. Many of the themes overlap with those of AIMA’s previous guide, which was formulated for European hedge fund managers in 2002.

The rapid growth of the Asian hedge fund market sparked the need for the document, which can be downloaded for free from the AIMA web site . Officials estimate that the hedge fund community in Asia has grown by more than 200% since 1999, when the first Asian AIMA Chapter was organized in Hong Kong.

AIMA’s presence has spread, with a Japanese chapter launch in 2001 and a Singapore group establishing itself earlier this year.

The advice in the new guide is general in nature and runs the gamut from business plans to valuation strategies.

One of the only caveats given specifically to Asian managers is that in training new employees, managers need to carefully ensure that individuals comply with certain regulations. According to officials, in certain Asian jurisdictions, particularly when shorting stocks, managers should be careful because penalties for incorrect dealing may be severe.

Goldman Sachs International coordinated and managed the development of both the Asian and European guides. Sam Stubbs and James Shipton of Goldman Sachs Prime Brokerage in Asia worked on the Asian project with the goal of helping new entrants to the Asian hedge fund industry adopt sound business practices and to avoid costly mistakes, officials said in a statement.

AIMA hopes the Asian guide is as popular as its European sibling, which has been downloaded 70,000 times since its release.

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Contact Bob Keane with questions or comments at [email protected].


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