While hedge funds are not registered with or required by the Securities and Exchange Commission to reveal their holdings, a populist uprising among investors is forcing hedge fund managers to reveal more information about their holdings, The Wall Street Journal reports.

If a hedge fund manager provides at least some information about their portfolios, it would convince 61% of respondents to a survey by Deutsche Bank to invest in that fund. Conversely, if the hedge fund manager kept investors completely in the dark, only 3% said they would invest in the fund.

And just over 33% of hedge fund investors now require their managers to share portfolio management information, including risk, with them. Surprisingly, perhaps, only 20% concern themselves with a hedge fund’s returns, while 25% focus on a manager’s previous experience and nearly 50% concentrate on a manger’s strategy and style.

Deutsche Bank conducted the survey among 376 pension funds, endowments, foundations and wealthy families that collectively have more than $350 billion invested in hedge funds. The survey also showed that institutional investors are moving some of their money away from private equity into hedge funds.

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The staff of Mutual Fund Market News ("MFMN") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MFMN, and have not prepared, sponsored, endorsed, or approved these summaries.

 

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