If there was ever a time for hedge funds to speak directly to the media- now is the time. Instead the Managed Funds Association decided to ban the media from its next conference. The MFA is home to over 2400 members and some of the largest hedge funds. And the decision to bar the media from its annual meeting reverses 15 years of playing nicely with the media.

So now after losses in Q4/2009, and the many daily  reports of  Madoff/ Galleon/ Ponzi-like schemes. the one industry that could really profit from some good PR is shutting its doors. Doesn’t it make more sense to open up the lines of communication just as weary investors are starting to consider alternatives again? Wouldn’t it be more useful to use every opportunity to open the veil of secrecy to educate the public on this financial vehicle? How about a chance to  showcase the many managers that have been following the rules, and even pulling in decent returns in the last few quarters?

Unfortunately the MFA will play right into the hands of John Q. Public (who believes every HF is damned by association) by missing a good venue to correct the rumors.