The Managed Funds Association is planning to create the largest database on hedge funds and use the information to lobby Washington. The database will amass each hedge fund’s assets, number of investors, location and various strategies—but encrypt the information so each fund’s information is anonymous.
“As the primary source of industry information for policymakers, the media and the public, it’s important that we collect and aggregate data in a confidential and timely manner from as many managers as possible,” said Richard Baker, president and chief executive officer of the MFA.
The MFA, which has 2,400 members, is partnering with PerTrac Financial Solutions to create the database, which if successful, will far surpass the dozen or so hedge fund databases already created that are limited by the fact hedge funds are not required to register with the Securities and Exchange Commission. PerTrac has already created one of those databases, which totals 22,000 funds from 5,300 advisors.
“We’re looking to make a cosmos out of the chaos out there right now,” said Meredith Jones, managing director with PerTrac.