New York Times – Only foolhardy parents would allow their children to provide only the grades on their report cards that they were happy with. Yet hedge funds are given this luxury in reporting their performance to compilers of sectorwide performance indexes, Breakingviews says.
One result is that, while a single fund’s track record is clear enough, hedge fund index returns still flatter the average fund in the industry, the publication says. Investors would be smart to call for a cleanup, Breakingviews argues.
