Why hedge funds need to be more transparent
AUSTIN, Texas—(Marketwired – Feb 12, 2019) The global hedge fund industry needs to be a little more transparent about the way it invests, according to a new report from the International Association of Investment Funds (IAIF), which was released Monday.
The IAF is the international governing body for the hedge fund and private equity industry, which it describes as “an innovative and growing sector that contributes to economic and social well-being across the world.”
The IAAF’s report recommends a number of reforms that include more transparency on the investment decisions of private equity firms, and the establishment of a regulator to oversee hedge funds that invest in financial assets such as commodities.
The IAF also urges hedge fund managers to be better informed about the underlying investments of their investments.IAF Executive Director Paul Gorman said in a statement that the report is important to support a more transparent hedge fund landscape and the broader investment environment.
“Investors should be able to easily understand what they are investing in and how it will affect them and the economy,” Gorman wrote.
“Investors also need a better understanding of what they can do to mitigate risks associated with the investment.
We all want to invest in the future, and hedge funds can be a great place to start.”IAF Chairman Jens Gartenberg said in an emailed statement that there is a “clear need” for investment regulators to be able “to track the investments of hedge funds” and “to ensure that investors are able to make sound decisions about the risks and opportunities associated with their investments.””
It is essential that these regulators understand and address the complex challenges that hedge funds pose, and that they are empowered to take swift action when they see them,” Gartberg said.”
I hope this report will assist with this task and help ensure that hedge fund investors are not being exploited by hedge funds to get their investments into a speculative bubble.”
Investment managers need to know more about the business side of hedge fund investing, said David DeSantis, chief executive of Alpha Finance.
He said that the lack of transparency in the investment process is particularly concerning for institutional investors because they are the ones making the investment decision and are responsible for their investment.
“As a global investment company, Alpha is a public company, and we have the right to know what is being put into our funds and how they will benefit society,” DeSantsons said.
“It’s a basic principle that investment companies should be transparent and accountable, but we need more transparency to make sure our clients are getting value for their money.”
A hedge fund has about $6.3 trillion in assets under management, and it has the ability to invest billions of dollars in commodities, such as gold and oil.
The hedge fund world is still undergoing a big shakeup, with the closure of some funds and the rise of other hedge funds such as Blackstone and KKR.
The number of hedge-fund managers has grown dramatically, with more than 80,000 in the U.S. alone.
The U.K. has seen the biggest increase in the number of public hedge funds, with 3,800 of the 4,000-plus new funds established since the year 2000, according a report released by IAF in March.
The U.A.E. saw the largest increase in hedge fund numbers, with 4,800 new funds created.
But in other countries, hedge funds have been growing in popularity.
In China, there are more than 60 hedge funds operating in the country.
The number of private companies that hedge their investments has also grown dramatically over the last decade.
In the U., private equity has risen from just 20 to more than 160.