Two panels appointed by Treasury Secretary Henry Paulson advised hedge funds to adopt guidelines including increased disclosure and strengthened management of risk in the aftermath of the rout in credit markets. ``Hedge funds, along with other market participants'' need to ``better evaluate and implement strong practices to better manage their businesses and reduce risk,'' the panels said in a summary of their recommendations released yesterday by the Treasury. ``The robust practices set forth in this report will be critical to and consistent with the goal of reducing systemic risk.'' The committees, led by officials from Calpers, the biggest U.S. pension fund, and Eton Park Capital Management LP, were the product of a hedge-fund review by the Treasury, Federal Reserve and other regulators last year. The push for more details on assets at risk of loss echoes the Group of Seven's call last week as policy makers seek to tighten supervision of capital markets. ``People have been shocked by the severity of the excesses caused by self-regulating mechanisms,'' said Robbert Van Batenburg, head of research for Louis Capital Markets, a broker whose clients include hedge funds, in New York. ``It's going to be difficult for regulators to keep pace with the industry. It's extremely hard to regulate.'' Paulson is scheduled to speak on the reports today in Washington at 11:30 a.m. http://www.bloomberg.com/apps/news?pid=20601087&sid=azt5tTk..S.o&refer=home Paulson is the most funny Treasury Secretary the U.S. had ever....