# kaal:claim:3405660-003

**Claim.** Hedge fund secrecy is not incidental but competitively necessary: the less the market knows about a fund's activities, the easier it is for the fund to compete and generate the returns clients demand.

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

**Source quote.**

> Their penchant for secrecy originates in hedge funds' need to stay competitive to generate the returns demanded by their clients. The less information the market has about hedge funds' activities, the easier it is for them to compete with other funds.

**From.** Kaal, *Indirect Regulation of Hedge Funds* (2019), I. Introduction, page 4

**Cite as.** Kaal, Indirect Regulation of Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3405660

**Verify.** sha256 of source PDF `cf507b1833071765bc13a5605f38c2591582eca85f40869e38b6ff075c04d29d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Indirect%20Regulation%20of%20Hedge%20Funds.pdf

**Topics.** private-funds, disclosure, economics

**Keywords.** hedge-fund-secrecy, information-asymmetry, competition, transparency

**Related claims.**

- extends: https://wulfkaal.github.io/claims/2348463-009

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