In an earlier post we talked about the issue of hedge fund returns vs. index funds. That's one battle for the massive hedge fund industry--but there's another that's maybe more important: The issue of transparency. Hedge funds might not be publicly traded, but the U.S. Securities and Exchange Commission requires that money managers overseeing more than $100 million--disclose their holdings.
Bulldog Investors’ Phil Goldstein says that’s like forcing Coca-Cola to give away its secret recipe. Why pay a manager to invest your money, he says, when you can just mimic that manager’s stock market plays for free? Goldstein and former SEC prosecutor David Marder debated the issue with Mark Haines on "Morning Call."