The Terminators: SEC deregistrations remain the exception

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Small funds opt out, but only 13 multibillion-dollar firms pull the plug
By Josh Friedlander

While hundreds of U.S. hedge fund advisors terminated their registrations with the U.S. Securities and Exchange Commission last year, nearly two-thirds of the largest firms remain registered, with only 13 out of the 241 members of the Absolute Return Billion Dollar Club (firms with $1 billion or more in assets) having dropped out. The dropouts include Adage Capital Management, Ospraie Management and Copper River Management (see chart).

Many say their investors are indifferent to registration and that the costs outweighed any hard-to-calculate benefits. "Not a single