The Hedge Fund and Asset Management industry continues to experience significant growth and unparalleled success. At the same time, Hedge Funds and Asset Managers face ever increasing criticism and scrutiny from a wide variety of sources, including politicians, regulators, the press and the plaintiff’s bar. Allegations of misconduct and lawsuits against fund managers are on the rise and there is no end in sight. At the same time, the sophisticated investors who invest with fund managers demand superior performance, while expecting adherence to the traditional high standards of care, loyalty and good faith.
If anything, the risks associated with running hedge funds and asset management firms appear to be getting worse. With hedge funds and asset management firms venturing into different areas, such as lending and private equity, and with the specter of governmental regulation looming, now is a very risky time for hedge fund managers and general partners.
A brief list of allegations that Hedge Fund and Asset Management firms face includes:
- Inadequate or Misleading Disclosure in the Offering Memorandum
- Short- and Long-Position Trading Conflicts
- Failure to Follow Investment Guidelines
- Improper Side-by-side Trading
- Failure to Disclosure Conflicts of Interest
- Improper Valuations of Investment of Non-Liquid Assets
In this environments managers need the guidance of an experienced advisor. Owens Group works with Hedge Funds and Asset Management firms to design insurance programs that meet the specific and unique needs of the hedge fund and asset management industry.