The Group of Eight leaders meeting in Germany stepped back Thursday from agreeing to tough controls for hedge funds, the meeting's communique shows, according to dpa. "Given the strong growth of the hedge fund industry and the increasing complexity of the instruments they trade, we reaffirm the need to be vigilant," the communique said. The summit's final document said that the global hedge fund industry "should review and enhance existing sound practices benchmarks for hedge fund managers." In particular this included "areas such as risk management, valuations and disclosure to investors and counterparties in the light of expectations for improved practices set out by the official and private sectors." Reflecting the views of the US, where the largest number of hedge funds are located, the communiqu e said those involved in the hedge fund sector "should act to strengthen the effectiveness of market discipline."
