Newsday – The Treasury Department on Tuesday announced the formation of two advisory groups to develop recommendations for a set of “best practices” for the operation of hedge funds, the giant pools of capital that were heavily involved in the recent financial market turmoil.
The groups were formed under the direction of the President’s Working Group on Financial Markets, an interagency panel formed after the 1987 stock market crash that seeks to improve market operations.
One of the advisory groups will be composed of investors in hedge funds and the other group will be composed of asset managers.
“These are drawn from among the industry’s finest in their respective areas,” Treasury Secretary Henry Paulson said in a statement announcing creation of the panels. “The market will benefit if experienced participants develop and implement best practices.”
Russell Read, chief investment officer for the giant pension fund, California Public Employees Retirement System, will be chairman of the investors’ committee. Eric Mindich, the chief executive of Eton Park Capital Management, will be chairman of the asset managers’ committee.
