Choosing wisely

The opaque world of hedge fund managers is gradually falling under the gaze of a wider spectrum of investors, both individual and institutional. As an increasing number of investors take steps toward hedge fund investing, they are demanding clearer information about these secretive creatures, and seeking to understand how to identify the good ones. For traditional investments, the consequences of poor manager selection can be masked, to a degree, by movements in the underlying markets. Unfortunately, this is not the case with hedge funds. For in hedge funds, the investor is (in most inst...