Performance and risk statistics reported by hedge funds are unreliable. In fact, the only true way to tell the profit or loss on a hedge fund is to cash out the investment.

These are the findings of a working paper by Don Goldman, chief financial engineer for Measurisk, a risk evaluation firm in New York, which was filed with the Securities and Exchange Commission in early May just ahead of the SEC roundtable on hedge funds.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.