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Comment by bluetwo | Hacker News Reader

The stock market itself has gone up in the last year. Exactly what regulation prevents funds from releasing information about their track record? Any fund you buy is provided to show you their track record, as well as "SEC Yield" a normalized measure of recent returns.

Sound to me like they are trying to avoid being compared to other metrics, because they don't fare as well.

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Laws against making a public offering, which hedge funds are generally subject to, prevent public disclosure of track records.

I'm going to need a source on that one. That sounds like bunk.

Hedge funds do not want to run afoul of the SEC rules on marketing. Even though these rules were relaxed in 2013, the risk of revocation is there. http://www.newyorker.com/business/currency/why-arent-hedge-f...

I bet they show potential investors their returns. But to the public? That may be both iffy and unnecessary.

Showing returns isn't the same as making a public offering. This article doesn't even claim that. Hedge fund managers do it on CNBC all the time without running afoul of the law.

"Given the uncertainty and potential adverse consequences of forfeiting the Regulation D exemption, many fund managers [are] careful to avoid specifically mentioning any fund names or details in interviews and press releases." Thomas P. Lemke, Gerald T. Lins, Hedge Fund and Other Private Funds: Regulation and Compliance, General Solicitation or Advertising Activities, S. 4:8 (2016). The edit above from "were" to "are" is based on my own experience as a practicing hedge fund attorney. While, as mentioned below, the JOBS Act loosened the compliance burden with respect to public offerings, most smart hedge fund managers still play by the old rules. "Avoid specific discussions of past performance--In the context of a press release or interview, providing applicable disclaimers and disclosures would be problematic and cumbersome. If a discussion of performance is unavoidable, the performance should be given net of fees." Id., Press Releases and Interviews, s. 5:12. We would generally advise our clients that there is no situation where a discussion of past performance is avoidable, and it should be avoided absolutely.

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