Borges Seeks Voluntary Standards Rather Than Regulation

At a time when many hedge funds are struggling for survival amid sinking markets, investors' withdrawals and concerns about lenders, the former Goldman Sachs executive and central banker is trying to cajole managers to sign up to the industry group's voluntary standards. The effort has been slow-going, but the group, called the Hedge Fund Standards Board, announced 10 new members Wednesday. Total membership now stands at 24 funds, accounting for about half of the hedge-fund assets managed in Europe.

At the same time, he is seeking to limit regulation during a period when government officials are desperately seeking ways to stabilize the rocky markets...

Mr. Borges, 58 years old, is ramping up a public campaign against the U.K. short-sale ban, calling for it to be lifted as soon as possible. "It has been counterproductive," said Mr. Borges, citing the fact that even stocks included in the short-sale ban had continued to fall, among other factors...

The group has met resistance from several managers, some of whom are concerned that the standards will bring additional liability, while others consider it a waste of time...