From black box to open book: Hedge fund trust and transparency (PricewaterhouseCoopers)

June 2012

KEYWORDS: hedge funds, transparency, infrastructure, hedge fund infrastructure, Institutional Investors, investor protection, Hedge Fund Managers, hedge fund investor, Prime Brokerage, prime broker, auditor, Global

Authors:

Barry Benjamin, Mark Casella, Gary Meltzer, Mike Greenstein, Will Taggart, Paula Smith

Organizations:
  • PricewaterhouseCoopers

Summary:

US hedge funds have significantly enhanced their transparency, controls and infrastructure, helping to win the trust of institutional investors that is critical for their future growth. Across the hedge fund value chain, a new framework is emerging that is improving investor protection. But this evolution remains a work in progress, with inefficiencies and areas for improvement yet to be addressed.

PwC explores how each member of the hedge fund value chain – manager, investor, administrator, prime broker, auditor and director – are adapting to this new paradigm and can strengthen trust in the sector. The findings are highlighted in this thought leadership piece.

This paper is one of a three-part series on the global impact of trust and transparency in the hedge fund sector.

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