# kaal:claim:1806252-010

**Claim.** Because hedge fund trading strategies depend on confidentiality, required disclosures that let other market participants trade along or anticipate a fund's transactions can negatively affect the fund's absolute returns.

**Type.** mechanism  **Support.** argued

**Holds when.**

- strategies rely on interpreting market environments not yet priced in by others

**Source quote.**

> If other market participants trade along or are enabled to anticipate certain transactions by a hedge fund because of required disclosures, the disclosing hedge fund may not be able to fulfill its mandate to maximize shareholders' value

**From.** Kaal, *Hedge Fund Regulation Via Basel III* (2011), V. AN ALTERNATIVE APPROACH TO HEDGE FUND REGULATION, page 61

**Cite as.** Kaal, Hedge Fund Regulation Via Basel III (2011). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1806252

**Verify.** sha256 of source PDF `3343ebfe05a925c3d1a75625c4b351ccff515c50819a48d155804daacf01429d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202011%20-%20Hedge%20Fund%20Regulation%20Via%20Basel%20III.pdf

**Topics.** disclosure, private-funds

**Keywords.** disclosure, confidentiality, trading-strategies, hedge-fund-returns

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.