Sunday, 23 November 2014
Last updated 2 days 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.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...