However, while investors are demanding more transparency from hedge fund managers, they also expect hedge funds to cover the costs. More than two-thirds of managers pass on the cost of D&O insurance, as well as regulatory registration and compliance for the fund. However, over half of investors say it is unacceptable for managers to pass through the cost of D&O insurance, and about half say it is unacceptable for the costs of regulation to be passed on to the fund.Managers and investors also disagree on who should pay for functions like shadowing. While nearly 90% of hedge funds perform shadowing, and nearly all investors believe shadowing is critical to accurate valuation and reporting, only half of investors feel shadowing is worth the potential costs being passed to the funds.
Perceived Benefits Of Hedge Fund Regulation Deteriorates Among Investors, According To Latest Ernst & Young Global Hedge Fund Survey
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts