[SalvatoreDali]

This does not seem like a serious objection to me. Hedge funds track, keep track of far more complicated financial arrangements. Just valuing options to see when they are in the money is orders of magnitude more complicated. What the op suggests can be done using nothing more complicated than a spreadsheet. "It just proves unworkable for a fund with hundreds of investors to track everyone's benchmarks separately" - huh? Maybe 300 years ago when you had nothing but pen & paper. This is like saying it would be impossible for a mortgage issuer to keep track of each lenders current (adjustable) rate