The article focuses on a proposal that would require hedge funds and private equity entities to provide investors with detailed quarterly statements.
A recent Triangle Business Journal article about a proposal to provide investors with more regular and detailed insight into the activity of hedge funds and other private investment vehicles includes insights from Associate Professor of Finance Adam Aiken.
The article by reporter Lauren Ohnesorge explores the implications from the proposal by the Securities and Exchange Commission which advocates say is designed to provide more transparency to investors.
Aiken told the Triangle Business Journal that pressure for such changes has been building, particularly as private equity moves more toward retail investing which can “blur” the lines between high net worth individuals and investors who are less sophisticated.
“There’s been talk of having private equity in your 401(K) plan, and any time you start talking about retail … the SEC gets interested,” Aiken said.
In addition, reports that private fund managers have sometimes given investors misleading information on performance to justify higher fees have added to the pressure for more disclosures.
Read the entire article here.