With attacks raining in from all sides the industry is burying its head in the sand as the regulators and the tax man close in
After months of attacks on the hedge fund industry from regulators, taxmen, lobby groups, leading attorneys and the press, the US hedge fund industry is resigned to some form of regulatory change. The only question remaining is: how far will it go?
Some of the big hedge fund groups have even instructed their legal counsel to explore the implications of moving their main operations offshore in the event that the environment gets too hostile. They stress that this is just a precautionary step and say that they hope nothing drastic happens or, better still, that nothing at all happens.
However, the chances of the industry being left alone as happened after previous investigations seem unlikely. Most people expect that, at a minimum, hedge funds will have...