Hedge Funds’ Double-Edged Sword

To meet investor and regulator concerns, many hedge funds must provide more transparency--while still keeping their strategies close to the vest.

In May, fund managers, service providers, attorneys, accountants, investor advocates and foreign and US regulators gathered in Washington, D.C. for roundtable discussions on the hedge fund industry. The gathering, part of the latest step in the Securities and Exchange Commission’s yearlong investigation, was aimed at delving into a variety of issues, from the market impact of hedge fund strategies to the industry’s valuation and marketing techniques. But at the heart of it all was the extent