Timely and Efficient Information

The fund should designate a representative to whom both periodic and interim reporting will be made. Communications with the fund are then limited to this individual or individuals, eliminating duplicative communications. If set up properly with electronic data transfer, this should be the only communication required with the fund. By transferring data, the fund does not have to “check” its holdings, either internally or through its money manager, and let counsel know its purchases/sales, so that counsel can then determine the fund’s losses and get back to the fund.

With portfolio monitoring, the calculation of the fund’s losses is done automatically and the only contact with the client is when the information is conveyed to the client. By taking out these unnecessary steps in the communication process, the information can be provided to the fund on an efficient and timely basis. Timeliness and efficiency are critical since a fund has just 60 days to quantify its losses and complete its analysis of whether or not to seek lead plaintiff status. Thus, any delay in the analysis or transmission of data can be detrimental to the fund.