How to Maintain Confidence in Hedge Funds

" Actor crippling 2008 and a wave of scandals what did hedge fund managers do to restore it steep. Investors' confidence my next guest says they can start by being more transparent. Matt Simon is an analyst at camp group -- do you beer is -- investors are demanding that it had on world."

" They are mean hedge fund industry has always been performance -- It's simple hedge fund managers that don't deliver good returns don't get the investors to redeem their assets and so managers are trying to be more transparent to try to convey."

" Investor confidence. What about money flown back into the hedge funds finally in the most recent quarter the hedge funds had inflows after that first time in a year. But with these insider trading bus does that give investors some Paul's if you will."

" Yeah I think that one of the things that we've seen is that. Investors are definitely concerned some of these issues that come up in terms of the insider trading scandals and post -- last year there's definitely going to be. Resistance to putting in more money into industry finally we get to a point. Where investors seem like there's going to pull back in but during money back into the industry and again more stories seem to be breaking every day."

" What are they doing beyond a day moving away actually from hedge funds are really hedge funds anymore that there. Summer moving into mutual funds which is so much tougher regulation or even individual separate account."

" Yet managed accounts seems to be a big thing that investors are asking for. And that -- accounts helped to bring -- industry because it avoid some of the -- issues by giving investors a better Intel into the actual holdings that they have. But on other things like mutual funds are definitely going to be competition going forward ETFs continue to be. A big big push by investors. More regulation is just in the cards for hedge funds but they already moved in advance of that and registered as investment advisors in many cases. Yeah I mean many of the largest hedge funds have courage he registered the the new threshold is going to be. Over a 150 million dollars in assets under management. Not a big concern by may the -- response it does take time it does take effort it's gonna increase the amount of money that had went up to spend on meetings regulatory issues. But it's not so much bigger issue today. About the fees 20% of profits plus 30% you name -- they charge -- are they going to come down in order attack us. In our recent covers say we ran out we spoke to over sixty hedge funds representing about 10% of the industry assets under management and the killing twenty wolf still alive and well. It seems and management fees are coming down actually on a weighted basis when you look at my assets under management and one point 75%. Was the number that we had and managers continue to say that these are going to come down. It."

" Who whole quarter -- a percentage point -- what you will but what about the high water mark how many funds roughly. Are still not even back to the breakeven in the -- again and lost much money last year they've got to make it back. In -- in to hit that high water mark in -- businesses."

" A number of funds mentioned are still below. It's going to continue to be an issue for them and that's why investors are going to be looking for this transparency because on the performance side and that's where they're going to be driving all of the revenue we continue to see issues related to that."

" That's good to say thank you so I think I'm an analyst at the -- the future of hedge science that."