SEC plan exposes schism across the industry


Big funds have finally emerged as the hawks fighting a rearguard action against regulation

The long-awaited U.S. Securities and Exchange Commission report on hedge funds contained few surprises, but has left the industry split from top to bottom. The bigger, older funds appear to violently oppose any form of regulation and are using their mouthpiece, the Managed Funds Association, to fight a rearguard action against the new rules which are in danger of changing the industry that has served them so well beyond recognition. Meanwhile, investors and many of the younger, medium-sized funds appear to welcome the recommendations.

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