Risk USA 2003: Schachter hits out at hedge fund disclosure

Barry Schachter, head of risk management at US hedge fund Sac Capital Advisors, believes quantitative hedge fund information disclosure to investors is relatively meaningless, and that they would be better served by disclosures about the risk management function at unregulated funds.

Speaking during the plenary session at Risk magazine’s ninth annual Risk USA conference in Boston today, Schachter said even position-level information is inadequate to serve investor needs, as the information is often irrelevant without the investor knowing the fund’s strategy. Schachter added that even if a hedge fund divulged both position-level data and its strategy – a highly unlikely situation as it would raise concerns that investors could reverse engineer the fund – it would still