Many funds will stay registered, as an angry SEC picks up
Registration with the U.S. Securities and Exchange
Commission may no longer be required for hedge funds, but don't
expect hordes of them to go out and deregister. Initial
indications are that many hedge funds currently registered will
stay in the system.
"To go from registered to unregistered would be
viewed as a stigma," says one manager who was none too happy
about registering in the first place. But now that it's done,
he says, it doesn't make sense to change. "It's like putting a
red flag in front of a bull."
Many at the SEC are seeing red over the decision by the U.S.
Circuit Court of Appeals in Phillip Goldstein, et al. v. the
Securities and Exchange Commission. In throwing out the SEC's
controversial registration rule, the court may have initially
set the SEC back...