SEC litigation against funds rose in '05

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Whether a result of better gumshoe tactics by the U.S. Securities and Exchange Commission or more managers misbehaving, the agency issued 134 litigation releases involving hedge funds in 2005, a substantial rise from the 103 it logged in 2004.

The agency issued 134 litigation releases involving hedge funds

Such filings involved everything from allegations of massive fraud at Bayou Management to minor securities violations. Since the typical SEC legal action averaged three litigation-release filings, the actual number of distinct cases in 2005 was roughly 44 versus 33 in 2004, according to estimates from agency officials.

So what is ahead? If