日本の相場格言には「人の行く裏に道あり花の山」というのがありますが、アメリカでも「A fisherman sees another fisherman from afar.」（漁師は遠くから他の漁師を見つめている。）というものがあります。
Disclosure issues at hedge funds
One of the reasons why hedge funds are not well understood by ordinary investors is disclosure issue.
There are following reasons for this.
First, hedge funds are not required to provide the same level of disclosure as you would receive from mutual funds. Secondly, hedge funds do not intend to disclose their strategies in detail as those are sources of excess returns.
If how they manage money is disclosed well in public, other hedge fund manager would probably copy that strategy in order to get the excess return.
There is a proverb in Japan that says “There are blooming flowers in a path where people do not go.” And in the U.S., “A fisherman sees another fisherman from afar.” Is said.
The former means that you can make money in a different way people do not do. The latter means competitors are always looking for easier way to make money.
However, hedge funds have been required to raise the level of disclosure by monetary authorities and customers for years. It is true that the transparency of hedge funds have been improving thanks to advancement of information technologies and administrators’ service level
It is also good that hedge funds and fund managers are well-understood by the improvement of disclosure.
This is an example of the improved disclosure by GCI Endowment Fund.
The fund discloses quantitative indicators of its hedge fund “GCI Systematic Macro Fund A” monthly at the same level of ordinary investment trusts available in Japan.
Like this example, when investment trusts invest in hedge funds as a building block of portfolio, disclosure level should be risen dramatically.