Reporting: a better performance measure
Past performance is no guarantee of future returns. RiskMetrics' John Matwey says more and more investors will therefore inevitably demand third-party reporting of risk positions taken by hedge funds.
A track record of positive returns is a good starting point for anyone looking for a good fund manager. Nobody wants to invest with a manager who either doesn’t have a track record or who has already demonstrated a propensity for losing money. Past performance may not guarantee future returns, but good performance is certainly better than unknown or bad performance when it comes to attracting and retaining investment capital.
So, for lack of any better measure, investors have continued to chase
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