Just how fair is ‘fair value‘?

The badge of independence may be worn with honour by hedge fund administrators. Increasingly, however, the extent and nature of this independence is being brought into question.

This month, even some administrators themselves have said managers are asking (if not pressuring) them, to ‘rubber stamp‘ valuations provided to them by those very managers. A worrying development indeed, especially for Europeans where investors by and large assume the administrator to be the investors‘ champion, a gu