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The
London-based group said hedge fund managers Citadel plus
Bermuda-based Hiscox Re Insurance Linked Strategies Ltd and Hong
Kong-based Myriad Asset Management Ltd have joined as
signatories. U.S.-based pension fund Pennsylvania Public School
Employees' Retirement System, which invests in hedge funds,
joined as an investor, the newsletter said.
Citadel, founded by Kenneth Griffin, invests some $26 billion in
assets and saw its flagship Wellington fund end 2016 with a
roughly 5 percent gain, having recovered from losses at the
start of the year. Since its launch in 1990, the fund has
delivered an average return of 19 percent a year.
Some 125 hedge funds, which jointly oversee around $1 trillion
or roughly a third of the industry's assets, have signed on
since the group's founding in 2008, pledging to adhere to
standards in how funds communicate with investors, value assets
and manage risk, for example.
As the hedge fund industry works to shed its reputation of being
secretive, some investors have urged fund managers to join the
group.
Powerhouse firms including Bridgewater Associates, Och-Ziff
Capital Management, Pine River Capital Management and
Renaissance Technologies are signatories as are smaller firms
such as IONIC Capital Management.
To join, signatories must show they uphold the group's
standards, which also cover sections related to proxy voting and
borrowing stocks and establishing a board that tackles potential
conflicts of interest.
The Hedge Fund Standards Board works with members on issues that
have caught regulators' attention, including guarding against
cyber attacks. The group recently staged simulations to see how
well hedge funds have fortified themselves against cyber-attacks
such as potential demands for ransom from hackers, Thomas Deinet,
the group's executive director said in an interview.
(Reporting by Svea Herbst-Bayliss; Editing by David Gregorio)
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