A South Sea hedge fund

Hedge funds need to do a better job explaining themselves, according to a new study by the Spectrem Group. The Chicago-based research firm believes that more wealthy individuals would invest in the funds if only they understood them better. That’s wishful thinking. The activities of contemporary hedge funds are so murky and complex that no on really knows what’s going on. This poor understanding derives partly from the fact that hedge fund managers don’t want to show their hands to competitors....