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Investors in hedge funds run by Och-Ziff Capital Management Group received a billet-doux Wednesday, the same day the company’s shares were listed on the New York Stock Exchange. While politely reminding investors of their confidentiality obligations, the letter—signed by Daniel Och and James-Keith Brown—raises an interesting question that has received little attention as hedge fund and private equity managers have sort-of rushed to the world’s bourses.

Does the “timely and comprehensive information” that publicly-traded managers provide investors in their underlying funds constitute the kind of helpful material that would allow recipients to indulge in what the Brits so delightfully call ‘informed trading’ in the underlying manager?

Or, as the NakedShorts’ correspondent who provided the letter (linked below) noted:

Sensible letter, but I hadn’t thought through the implications of all the LPs in these things being insiders to a degree...

And neither, it seems, had many others. Until now. Och-Ziff (OZM) closed Thursday at $28.05, swooning more than 12 percent from its $32 offering price, and nearly 15 percent from its opening print at $32.75.

Source: Shot Across the Bow: Och-Ziff Warns on Confidentiality