West Palm Beach (HedgeCo.net) – In a white paper which was presented to high-level asset managers in New York by FinServ Consulting, ‘Preparing for Alternative Asset Management Regulation’, it is said that hedge funds should be prepared to identify, aggregate and report on counterparty risk exposures, enterprise-wide.

“The majority of hedge funds and private equity funds spent the latter part of 2008 and early 2009 instituting layoffs and shutting down projects. Now, in light of coming regulation, the heads of these funds will be faced with having to do more with less. Therefore, it is going to be critical that funds approach their compliance efforts in an organized and efficient manner,” said Howard Weinstein, Managing Partner of FinServ Consulting. “We recommend that funds identify a partner who can help them navigate these important steps. Ultimately, finding an experienced firm who has been through this process before will enable the fund to save both time and money.”

The paper outlines a roadmap for planning cost-effective, asset-building infrastructures to meet new rules, such as approaching new regulatory rules as opportunities, and facing compliance activities proactively, with a budget for meeting future requirements and exceeding investor expectations, particularly as investors return to the market.

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Bloomberg – Penjing Asset Management, a Hong Kong-based hedge fund of funds manager overseeing about $520 million, said it may not get any performance fees until next year, and declining income will restrict staff bonuses.

The company, which ran the fourth-best-performing Asia- Pacific fund of hedge funds last year, plans to keep all its 22 staff as layoffs by rivals make it cheaper to retain talent, said Chief Investment Officer Ronnie Wu.

“Realistically, 2009 we are just trying to climb the high- water mark,” Wu, 40, said in an interview yesterday, referring to a fund’s peak net asset value. “If we’re lucky, maybe we will get some incentive fees in 2010. It will be tough. The senior guys will take a pay cut. But if we can keep everybody intact, I think the future will get better again.”

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Tags: asia-pacific, asset-management, asset-value, chief-investment-officer, fund-of-hedge-funds, hedge fund of funds, high-water-mark, hong kong, incentive fees, layoffs, net asset, performance-fees, rivals