July 30, 2020
This seems like a terrible idea that will limit transparency on smaller hedge fund managers and make it incrementally difficult for allocators to consider working with them. Larger hedge funds are already attracting a large share of assets and will come out reinforced. Yet, the performance of hedge funds suffers as assets grow, which will lead to poorer outcomes for their investors. On the other hand, the barriers to entry for smaller managers will only rise and further reduce the chance of success for emerging funds. This proposal will hurt the industry as well as investors.