FYI: Earlier this month, a hedge-fund executive told me that one of the biggest reasons hedge funds have learned such shrimpy returns lately is that most of them have become so transparent. Clients not only can see what’s in his portfolio as often as once a week, he said; he also gets a peek at the portfolios of his leading competitors, and he assumes they see his fund’s as often as well. As a result, they can steal each other’s ideas and trade against each other’s positions. That makes it harder than ever for any of them to sustain outperformance.
Regards,
Ted
http://jasonzweig.com/would-fund-managers-work-better-in-the-dark/
