Investors to Hedge Funds: Show Me the Money (and How You Got It)


Institutional investors appear committed to hedge fund investing, but fund managers will face widerranging and more in-depth scrutiny, according to a survey by SEI and Greenwich Associates.

Hedge funds fulfilling performance expectations and embracing transparency will retain and capture assets, the survey found. The need for greater transparency and enhanced client reporting and communications from hedge fund managers was brought on by the worst year on record for hedge fund performance, according to an SEI news release.

SEI collaborated on the survey with Greenwich Associates, initially polling institutional investors in Continental Europe, the United Kingdom and the United States at the end of August. The firms reinterviewed respondents in November as the financial crisis deepened to help gauge the impact of market turmoil on institutional attitudes and plans concerning hedge funds, the release said.

While portfolio transparency was named by just one out of four institutions as a “very important” selection factor in the first-round survey, investors named portfolio transparency as the No. 1 investment criteria demanding more weight in the second survey.

Source: SEI, www.seic.com/ims/underthemicroscope.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.