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Reporting: a better performance measure

Past performance is no guarantee of future returns. RiskMetrics' John Matwey says more and more investors will therefore inevitably demand third-party reporting of risk positions taken by hedge funds.

A track record of positive returns is a good starting point for anyone looking for a good fund manager. Nobody wants to invest with a manager who either doesn’t have a track record or who has already demonstrated a propensity for losing money. Past performance may not guarantee future returns, but good performance is certainly better than unknown or bad performance when it comes to attracting and

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