Concerns regarding valuations of portfolio holdings of alternative investment vehicles, including hedge funds, are not new. A number of suits against a variety of investment management funds in the aftermath of the 2007-08 credit crisis were based on alleged deficiencies regarding valuation processes and practices. More recently, valuations of hedge fund portfolio investments have come under the ambit of SEC scrutiny owing to the changes ushered in by the Dodd-Frank statute promulgated in 2010. In general, investors in alternative investment vehicles could benefit by heeding disclosures regarding the valuation and reporting of portfolio investments such as are discussed in this post.
