Houlihan Smith & Company, Inc. Comments on the Release of Best Practices for the...

Houlihan Smith & Company, Inc. Comments on the Release of Best Practices for
the Hedge Fund Industry by the President's Working Group on Financial Markets

CHICAGO and WASHINGTON, April 17 /PRNewswire/ -- Treasury Secretary Henry
M. Paulson, who chairs the President's Working Group ("PWG"), announced today
that the release of the Best Practices for the Hedge Fund Industry is coming
"at the height of robust discussions about the need for market discipline."
Paulson further remarked that, "as these best practices are adopted by market
participants, we are taking further steps to support the process of
normalizing our financial markets today and to protect against future systemic
risk."
The PWG, which includes the heads of the U.S. Treasury Department, the
Federal Reserve, the Securities and Exchange Commission and the Commodity
Futures Commission, tasked two private sector committees comprised of
experienced and well-respected industry members to develop a set of best
practices. The result was the release of two distinct yet corresponding
reports: the Best Practices for Asset Managers and the Best Practices for
Investors. These reports offer guidelines and principles for valuation, risk
management, compliance, and conflicts of interest. Specifically, they
emphasize the need for comprehensive valuation procedures that include the use
of independent valuation professionals, thorough written policies,
establishment of valuation committees, oversight and other measures for the
valuation of assets, particularly with regard to hard-to-value and illiquid
assets.
"We believe that the timing of the Best Practices study could not have
been better. As independent valuation specialists, we witness the
inconsistency in the application of fair value measurement on a daily
basis and feel that this guidance will reduce the overall lack of
transparency in the Hedge Fund industry."
-- Karl D'Cunha, Senior Vice President, Houlihan Smith & Company, Inc.

HOULIHAN SMITH & COMPANY, INC. is a leading provider of investment banking
and valuation services to the hedge fund industry. Houlihan's dedicated team
of hedge fund valuation professionals incorporate proprietary quantitative
models and that reflect the current best practices in the industry.
Established in 1996, Houlihan is a registered broker-dealer and FINRA member
committed to the highest levels of professional standards. The Houlihan name
is synonymous with valuation and deal making expertise, leveraging years of
experience, reputation and relationships. Additional information is available
at http://www.hedgefundvaluation.com.
For more information regarding our Hedge Fund Services, please contact,
Karl D'Cunha at 312.499.5900 or e-mail kdcunha@houlihansmith.com
SOURCE Houlihan Smith & Company, Inc.

Karl D'Cunha of Houlihan Smith & Company, Inc., +1-312-499-5900,
kdcunha@houlihansmith.com