Valuation under the microscope


Hedge fund valuation has emerged as a key concern among investors and regulators worldwide. The issue reached a tipping point during the financial crisis. As markets went into meltdown many hedge funds found they were unable to liquidate their holdings at the prices communicated to investors, forcing them to recalculate their net asset values (NAVs) or suspend or gate redemptions until markets recovered.

The adoption of robust valuation policies and procedures will go a long way towards restoring