Commercial risk prohibits managers revealing shorts

Investors and regulators should never expect they will receive equal transparency on hedge funds' long and short sides due to the 'complete imbalance' in risk return profiles on each side of the book, according to a leading fund manager.

Ian Morley, chief executive of fund of fund manager Dawnay Day Olympia, told the Law and Regulation of Hedge Funds conference in London that the 'commercial and fiduciary risk involved in revealing shorts' was too great to make it feasible for hedge fund managers