Hedge Funds Exposed by Public Pension Funds
Hedge funds have been trying to get on the investment list for public pensions, but there is a downside. Public pensions have been hit with FOIA requests for return information, which would expose information that the hedge funds would rather keep them seThe danger to hedge funds of having one of their clients become the target of a FOIA request is becoming more potent. Hedge funds face the same risk as venture funds, some of which have had their returns exposed. According to Alternative Investment News, the issue is compounded by the fact that data vendors may be using FOIA requests to attain information that they sell. One possible fallout could be that hedge funds will simply turn away public plans that could be deemed as FOIA risks. Firms may also decide to provide less detailed information to investors.
Read the entire article from Institutional Investor here.