The former Bridgewater executive once known as hedge fund titan Ray Dalio’s right-hand man has said that a push by US regulators to force more disclosure of costly fees from alternative asset managers will be only a “modest step” towards more transparency in the sector.

Bob Elliott, who now heads hedge fund ETF Unlimited, told Financial News that hedge fund investors should not have an “opaque view of the fees they are being charged”, as hedge funds and private equity firms in the US battle the Securities and Exchange Commission’s new rules.