Don’t Play Favourites With Your Investors

As investor tastes evolve, an increasing number of hedge fund managers are offering multiple products, such as managed accounts, funds of one or co-investment vehicles, alongside commingled funds. However, in meeting demands for customization, there are a variety of potential conflicts managers must mitigate, including the allocation of investments, allocation of expenses, cross trades and liquidity rights. In this article, partner Daniel Hunter discusses what firms should be doing to identify, manage and accurately disclose potential conflicts of interest.