A recent survey of 30 financial journalists revealed that the media views hedge fund managers as much more savvy about the markets than their mutual fund counterparts, with every respondent agreeing on that point.

The Walek & Associates 2005 Hedge Fund Media Survey conducted telephone interviews with journalists in June, asking 16 questions about hedge funds.

"Though hedge fund managers enjoy tremendous PR benefits by the percentage that they are smarter about the markets, they face an uphill battle when it comes to their fees, the belief that the industry is growing too fast, and that blow-ups are on the horizon," said Thomas Walek, president.

This year, 47% of journalists felt that the hedge fund industry was expanding too quickly, compared to 32% in 2002. Also, 41% felt that expenses were too high, and only 42% believed that fund-of-funds are better investments than single manager funds.

The survey also discovered that, although media coverage mentions the phrases "hedge funds" and "blow-up" in the same article two to three times as frequently as three years ago, the percentage of journalists who anticipate a coming major hedge fund blow-up fell.

Most journalists, 61%, feel that additional regulation of hedge funds will protect investors, and most agree that hedge funds exacerbate stock market swings.

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.