Jason Zweig wonders whether undisclosed skin-in-the-game is a good thing. Can disclosure alone cure a real conflict of interest? Mutual fund managers wrestle with these issues but are usually criticized for having little or no skin in the game. Hedge fund managers must invest side-by-side with their limited partners, so there is less conflict than the one Jason writes about in the attached column–a large investment outside of the manager’s fund–but hedge fund managers are not free from all conflict.
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