The Alternative Investment Management Association (AIMA) has just issued a white paper on the hedge fund industry. The study, ASSET PRICING AND FUND VALUATION PRACTICES IN THE HEDGE FUND INDUSTRY, is a result of the growing focus from investors on the more complex hedge fund strategies and the manner in which the portfolios of such hedge funds are priced. From the white paper’s Foreword:

The hedge fund industry has experienced considerable and steady growth in recent years, both in terms of the number of funds and the assets under management. With this development has come a growing focus from investors on the more complex hedge fund strategies and the manner in which the portfolios of such hedge funds are priced. This paper reports a research on Asset Pricing and Fund Valuation Practices in the Hedge Fund Industry, which is the result of the industry’s desire to ensure that investors’ interests are protected, as well as a desire by the industry to continue to improve its practices.

You can download the 12 page executive summary here (PDF) or purchase the full copy of the study from the AIMA here (PDF).