Monitoring daily hedge fund performance when only monthly data is available

It’s 4pm. Do you know where your hedge funds are?

Investors have long understood the value of frequent disclosure of information from portfolio managers. Arguments for increased disclosure by consumer groups representing individual investors, for example, helped to bring about new regulations requiring US mutual funds disclose complete portfolio lists at the end of each fiscal quarter rather than twice a year, starting in May 2004.

However, portfolio managers usually resist high-frequency disclosure due to the potential for harmful effects, whi