The Global Investment Performance Standards (GIPS) are a set of best practices designed to ensure consistency in the presentation of investment performance results. See “Expert Panel Provides Roadmap for Hedge Fund Managers Looking to Present Performance in Compliance with GIPS
,” Hedge Fund Law Report, Vol. 6, No. 30 (Aug. 1, 2013). Though theoretically voluntary, institutional investors often condition investments on, among other things, performance information presented in compliance with GIPS. Accordingly, GIPS compliance is viewed by many as a de facto requirement for hedge fund managers seeking institutional capital. See “Is GIPS Compliance and Verification Thereof a De Facto Requirement for Access by Hedge Fund Managers to Institutional Assets?
,” Hedge Fund Law Report, Vol. 7, No. 29 (Aug. 1, 2014). At the CFA Institute’s 2014 GIPS Standards Annual Conference, Karyn D. Vincent, a Managing Partner of ACA Performance Services, LLC, discussed the top ten GIPS compliance issues that she sees when acting as a GIPS verifier. Jonathan A. Boersma, CFA, Executive Director of GIPS Standards at the CFA Institute, also participated in the discussion. See also “A Step-By-Step Guide to GIPS Compliance for Hedge Fund Managers
,” Hedge Fund Law Report, Vol. 4, No. 44 (Dec. 8, 2011). This article summarizes Vincent’s top ten list, and identifies strategies for incorporating Vincent’s points into the marketing, reporting, disclosure and compliance efforts of hedge fund managers.