We are finding more and more hedge funds pursuing GIPS(r) compliance. We are pleased to see such interest as well as to count hedge fund managers among our verification clients.
While some believe that GIPS says everything that's necessary regarding hedge funds, we beg to differ. Dealing with side pockets, fees, and valuations are only a few of the matters which need further clarification.
Some time ago we launched, through the Performance Measurement Forum, a working group to develop guidance for this segment of the market, which would go beyond GIPS and encompass return measurement, risk, and attribution.
Because of schedule conflicts and other priorities, we have permitted the group to languish for a bit, but will soon resurrect it so we can complete our pursuit of this much needed material. Stay tuned for further updates.