The Independent – Hedge funds have given a voluntary code for the industry a collective thumbs-down – not a single firm has signed up to the compliance standards since they were launched in January.

Nearly five months ago the Hedge Fund Working Group (HFWG) published a raft of recommendations for the sector that were intended to raise governance levels across the traditionally secretive sphere. But a spokesman confirmed last week that no hedge funds had signed up to abide by the proposals beyond the original 14 signatories, including Man Group, Brevan Howard, Och-Ziff Capital Management and CQS.

An HFWG spokesman said the body’s priority was the appointment of a permanent chair, adding that it was speaking to a number of groups that could possibly sign up to the standards.

At the publication of the guidelines in January, Sir Andrew Large, chairman of the body, said: "Now it is up to investors to help take this forward. This is a voluntary, market-led initiative based on disclosure. It is investors who can provide the market discipline to ensure these standards are widely adopted."

In April a survey by the accountants KPMG revealed that eight out of 10 pension funds favour investing with a hedge fund manager that has complied with the 28 principles of the standards set out by the HFWG. More than 50 per cent of funds surveyed said they would require hedge fund managers to comply with the standards within three years.

News of the response to the voluntary code comes as the European Parliament assesses proposals to toughen up legislation linked to the industry. The former Danish prime minister, Poult Nyrup Rasmussen, is leading a group of MEPs calling for greater openness and scrutiny of hedge funds and private equity groups.

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HedgeWeek – A hedge fund focusing on Russia and the former Soviet Union, Da Vinci CIS Private Sector Growth Fund, has become the first listing on the Specialist Fund Market, the London Stock Exchange’s new market for alternative investment vehicles.

The fund has raised approximately USD110m to invest in unlisted equity and equity-related securities of companies located in Russia and other member countries of the Commonwealth of Independent States.

‘Da Vinci’s admission to the Specialist Fund Market, together with the formal listing of BH Global, the second main market fund from Brevan Howard, cement London’s position as the public market of choice for hedge funds and other alternative investment vehicles,’ says Martin Graham, director of equity markets at London Stock Exchange Group.

BH Global, a newly-established feeder fund investing in the Brevan Howard Global Opportunities Master Fund, began unconditional dealing on May 29 having raised USD1bn through a listing on the London Stock Exchange’s main market.

‘Integral to London’s attractiveness is the choice of markets that we are able to offer funds, aligned to their profile and structure, the types of investors they wish to target and the risk premium sought by investors,’ Graham adds.

‘The creation of the Specialist Fund Market adds to that choice, and we expect to see more funds follow Da Vinci’s lead over the coming months by using the Specialist Fund Market to access London’s unique community of expert investors.’

Da Vinci Capital Management founder and managing partner Oleg Jelezko says: ‘It is a great pleasure to see the Da Vinci CIS Private Sector Growth Fund commence trading, a major milestone for our flagship product.

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