| BOSTON, March 1
BOSTON, March 1 Hedge fund giant Citadel on
Wednesday became the latest U.S. investment firm to join the
Hedge Fund Standards Board, the industry's global
standard-setting body said in a newsletter.
The London-based group said hedge fund managers Citadel plus
Bermuda-based Hiscox Re Insurance Linked Strategies Ltd and Hong
Kong-based Myriad Asset Management Ltd have joined as
signatories. U.S.-based pension fund Pennsylvania Public School
Employees' Retirement System, which invests in hedge funds,
joined as an investor, the newsletter said.
Citadel, founded by Kenneth Griffin, invests some $26
billion in assets and saw its flagship Wellington fund end 2016
with a roughly 5 percent gain, having recovered from losses at
the start of the year. Since its launch in 1990, the fund has
delivered an average return of 19 percent a year.
Some 125 hedge funds, which jointly oversee around $1
trillion or roughly a third of the industry's assets, have
signed on since the group's founding in 2008, pledging to adhere
to standards in how funds communicate with investors, value
assets and manage risk, for example.
As the hedge fund industry works to shed its reputation of
being secretive, some investors have urged fund managers to join
Powerhouse firms including Bridgewater Associates, Och-Ziff
Capital Management, Pine River Capital Management and
Renaissance Technologies are signatories as are smaller firms
such as IONIC Capital Management.
To join, signatories must show they uphold the group's
standards, which also cover sections related to proxy voting and
borrowing stocks and establishing a board that tackles potential
conflicts of interest.
The Hedge Fund Standards Board works with members on issues
that have caught regulators' attention, including guarding
against cyber attacks. The group recently staged simulations to
see how well hedge funds have fortified themselves against
cyber-attacks such as potential demands for ransom from hackers,
Thomas Deinet, the group's executive director said in an
(Reporting by Svea Herbst-Bayliss; Editing by David Gregorio)