Tuesday, 30 September 2014
Last updated 3 min ago
Jan 28 2009 | 2:07am ET
Even before the Bernard Madoff scandal made it a regulatory priority, investors were increasingly concerned about the amount of information disclosed by hedge funds.
The Edhec poll, conducted last summer, found that four in five hedge fund managers and investors believe that liquidity risk is not sufficiently captured by hedge fund reporting. The respondents also said there is a correlation between the quality of hedge fund reporting and the quality of the hedge fund itself.
The French business school also found profound areas of disagreement between hedge funds and funds of funds on one side, and their clients on the other. Managers believe that information on risk-adjusted returns is what investors are looking for. Not so: Investors say they are most interested in past returns and information on extreme risks.
Nor did the poll find much faith in best-practices guidelines being promulgated by some industry groups.
The standards “rarely provide guidance on sound hedge fund disclosure,” the study said. “Many of the guidelines are vague and cover topics that are already standard disclosure.”
Edhec interviewed 214 hedge fund managers and investors for the survey.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
The trading world is inundated with strategies and techniques. Here’s one way traders can get a handle on information overload.