Hedge Funds Openness
Hedge Fund Managers More Transparent Since 2008
Here is an interesting story about a hedge fund manager who used to be among the most secretive and least open to investors and now has completed a full turnaround. Israel Englander of Millennium Management now sends his clients biannual financial statements and reports showing the firm's trading exposure and meets more frequently with investors. After a rough 2008, many hedge fund managers are becoming more open and embracing investor demands even though there is less pressure to do so after an impressive 2009.
In different ways, other big name hedge fund managers are also seeking to reinvent themselves by taking previously unheard-of steps both to sell themselves to new investors and hang on to existing ones.
Often that means attending breakfast meetings with wealthy customers of Wall Street's brokerage houses, going on golf outings with prospective clients and holding more frequent client conference calls.
For some managers like Englander, taking these steps is a response to the worst financial crisis in decades. That crisis decimated industry assets and left many investors with a dim view of the $1.4 trillion hedge fund industry.
Others like industry heavyweights John Paulson and Steven Cohen are putting on a more investor-friendly face in response to the whiff of scandal and bad publicity.
Managers' efforts to polish their images also come as government officials and average investors around the world are blaming hedge funds for kicking some stock prices lower, crushing currencies and manipulating commodity prices. Source