Morningstar, which already has aggressively expanded its coverage of hedge funds’ performance in the past year from 3,500 funds to 6,000, plans to grow that coverage even further, Reuters reports, citing comments by Morningstar Director of Hedge Funds Ryan Tagal.As more investors add these instruments to their portfolios, the demand for information about them will increase, Tagal noted. He would not specify, however, by how much Morningstar plans to grow that business.
Morningstar began offering hedge fund data in 2005, and expanded its information base significantly in March through its $55 million acquisition of Standard & Poor’s fund data business. Since then, Morningstar has been reconciling duplications between its own database and the records on 135,000 mutual funds and hedge funds around the world that it acquired from S&P. In a few months, Tagal said, the company will have a better idea of how many additional funds it is now covering.