How to see everything your hedge fund manager is up to
Martin Gagnon, co-CEO of Innocap Investment Management, looks at how the managed account platform structure can give an investor complete transparency, and peace of mind, when investing in hedge funds
Would you sit at a poker table, knowing that every other player has more information than you, ultimately exercising control over the game with your money? Or would you sit at the same table if you knew that the dealer would not help you in case someone cheats? Would you be playing if you were not allowed to leave the table to cut your losses?
And yet, this is the position in which traditional hedge fund investors find themselves in the typical set-up of writing a cheque to a hedge fund in a weakly regulated jurisdiction.
The other parties around the table are prime brokers, leverage providers, custodians, OTC...