Hedge Fund Investors Want Detailed Info

April 01, 2003, 1:00 a.m. EST 1 Min Read

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 funds returns, while 25% focus on a managers previous experience and nearly 50% concentrate on a mangers 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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