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Fund Spy

Hedge Fund Conversions--When Seeing Shouldn't Be Believing

We’re changing how we present the performance of hedge funds that convert into mutual funds.

Executive Summary

  • Investors should be wary of hedge funds that convert into mutual funds.
  • There's often less than meets the eye to these funds' track records, a portion of which reflects their performance as unregistered hedge funds.
  • These "hedge fund conversions" have tended to be poor performers as mutual funds.
  • To dispel potential confusion, we're changing the way we present these funds' track records.
  • We will cease displaying the funds' pre-conversion track record, which was amassed when they were unregistered hedge funds.