In an attempt to head off regulation, hedge funds in Europe are proposing that they will voluntarily become more transparent about their holdings, risk management, governance and valuation techniques, The Wall Street Journal reports.
Both the
The suggestions are coming out of the Hedge Fund Working Group, comprised of 14 leading hedge fund companies, including
It is “pretty difficult to coerce” hedge funds to do anything, said Man Group Chairman Stanley Fink, but if some funds begin to sign up for the best practices and investors begin to demand greater transparency, the movement might gain some traction.
But some politicians are not moved by the development. Poul Nyrup Rasmussen, president of the European Socialist party at the
The Group of Eight nations has been pushing for more disclosure of hedge fund holdings as well as a ratings system, like that used for debt.