The Managed Funds Association issued the fourth edition of “sound practices” on Monday, expanding its coverage to include properly valuing assets, managing risks, disclosing investment strategies and risks to investors and putting more controls over operations. MFA also created a questionnaire that investors can use to evaluate a hedge fund.

MFA said it issued the best practices with an eye to adhere to early recommendations from the President’s Working Group on Financial Markets, which is developing hedge fund best practices of its own.

“This is the industry’s effort to get ahead of the curve,” said MFA Chairman Eric Vincent during a press briefing.

MFA issued its first set of best practices in 2000, and then again in 2003 and 2005. The organization said it created the best practices after consulting with hedge fund managers, compliance executives, accountants and investors.

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