Transparency is not a cure-all for hedge funds

Transparency is the aspirin of the political and regulatory worlds; whatever the problem, a dose of ...

Transparency is the aspirin of the political and regulatory worlds; whatever the problem, a dose of disclosure will often fix it. The latest patient is hedge funds. Amid a clamour for more rules governing the funds, if regulators and trade groups in the UK get their way, we may soon find out more about how the funds work. We'll know their strategies and the companies they are investing in. But is that really wise? A certain amount of secrecy may be what made hedge funds so successful. If you get rid of that, you either drive the whole industry offshore or kill it. In the UK, the second-m...