BoNY-Mellon gives backing to changed classification system

New hedge fund classification would promote transparency and boost investor confidence, according to...

New hedge fund classification would promote transparency and boost investor confidence, according to Bank of New York Mellon. The group said the convergence between hedge fund and equity market returns, combined with inconsistencies in hedge fund classification could cause widespread confusion on how such funds should be used to diversify investment portfolios. Mellon also believes the lack of clarity surrounding hedge type vehicles may result in unrealistic return expectations for investors. In its latest report, entitled Rethinking Performance in the Hedge Fund Industry, the group s...