Hedge Funds more open about investment strategies

WEST PALM BEACH, FL (HEDGECO.NET) – Hedge funds are now more eager to provide details about their investment methods and strategies, in light of the growing number of traditional investors interestedin their products. According to a Reuter�s news report, this opening resulted from the growing number of Wall Street investors seeking hedge funds. The lackluster performance of the equity marketshas also helped to create this demand as investors continue to search for alpha in the markets. Joshua Rosenberg, president of Hedge Fund Research Inc., said, “As the hedge fund industry grows, weare seeing more transparency and noticing that even the largest hedge funds are less reluctant to share certain information.�

In recent developments, The California Public Employees’ Retirement System, {CalPERS} voted Monday to double its hedge fund management portfolio in light of the stagnating stock markets. This move may encourage other large pension funds to become more aggressive in pursuit of hedge fund investments. CalPERS is the largest pension fund manager in the United States, with a total of about $166 billion under management.

With this growing trend, more hedge fund managers are providing details of their investment strategies to interested investors. Traditionally critics of hedge funds charge that hedge fund managers are very secretive in their operations. Today, hedge fund transparency has significantly increased to the point that one may log into a hedge fund company website and browse through up to date data on the fund activities.

Hedge Fund Research Inc., now lets subscribers search for transparency data and other information on all of its 4,000 hedge funds. In 1998 only one quarter of such companies provide such data according to HFR. According to Rosenberg, “This is a simple way of attracting investment dollars.� Over 1,200 fund of funds also provide such data to HFR today, in 1998 only 204 funds were included in HFR database.

Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net

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