As regulation hits stalemate will SEC fund registration undergo a revival?
Mon Jul 6, 2009
While the regulation debate drags on, InvestHedge examines if funds of funds in the SEC-registered universe will benefit and how they shape up from both performance and transparency perspectives
By Niki Natarajan
Regulation of the hedge fund industry is back
on the drawing board after two years during which assets have
halved, liquidity has dried up and frauds were exposed. While
in the UK it is the management company that is regulated and
registered irrespective of how much money a manager runs, in
the US there seems to be a variety of permutations for
In the US a few years ago it was considered "trendy" to
register the management company, and those hedge funds that
wanted to escape the radar screen simply locked up money for
more than three years. However, many funds of funds went for
full registration, including some of the fund structures
themselves, to get assets from investors that would otherwise
think twice about hedge funds.
Funds registered with the SEC under the 1940 Act in the US
have never really taken off, only adding...
ISSN: 2151-1845 / CDC10004H
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