From the category archives:

Regulation

A New Threat to Small Hedge Funds and the Less Affluent Investor

October 27, 2014

A debate brews between the U.S. Security and Exchange Commission (SEC) and the hedge fund industry about proposed changes to the current definition of accredited investor. The Dodd-Frank Wall Street Reform and Consumer Protection Act requires this definition be reviewed every four years. The definition of an accredited investor has not changed since 1982, except [...]

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Regulators Shift Enforcement Focus to Hedge Fund Marketing Practices

July 16, 2014

The removal of restrictions on general solicitation, a consequence of the Jumpstart Our Business Startups (JOBS) Act, has created new opportunities for the U.S. Securities and Exchange Commission (SEC) to probe the depth of hedge fund pockets. The National Examination Program, part of the SEC’s Office of Compliance Inspection and Examinations, has made it clear [...]

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Hedge Funds in 2013 – The Year in Review

January 7, 2014

The year gone by: One of record-breaking index growth, an explosion in the growth of the number of alternative investment firms, strategies that stretched the bounds of human imagination, and the establishment of long-delayed and much-scrutinized regulations. Whether it was a good year or a bad one for the hedge fund industry is a matter [...]

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An Element of Hypocrisy

October 1, 2013

SAC Capital Advisers, LLC has been embroiled in legal battles with the SEC for more than a decade, most revolving around the issue of insider trading. When the practice of insider trading among members of the Senate and Congress (including their staffers) received heavy media scrutiny in November, 2011; the Stop Trading on Congressional Knowledge [...]

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No Billboards—Not Yet!

August 9, 2013

Hedge funds will soon be venturing into uncharted territory—marketing sophisticated investments, once the purview of the über-wealthy and institutional investors, to the broader retail market. The Securities and Exchange Commission (SEC), pursuant to a mandate put forth in the American JOBS Act of 2011, has finally met its duty under the law and lifted the [...]

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Is SAC Capital’s Claw-Back Policy Just a PR Move?

May 17, 2013

The term hedged fund was coined by Alfred Winslow Jones in 1949 and gained traction in the financial community largely because Jones was a financial journalist. Although Jones founded a private investment company, he was hardly the father of the hedge fund industry. It is more accurate to say he named the baby. Private investment [...]

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Dodd-Frank Act Results in Employment Opportunities for Lawyers

January 24, 2013

Private equity firms and hedge funds with assets under management greater than or equal to $150 million are required to register with the Securities and Exchange Commission (SEC) under the terms of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law July 11, 2010. Scope The Dodd-Frank Act is enormous [...]

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More Hedge Fund Jobs if the General Solicitation Ban is Lifted

December 21, 2012

The Securities and Exchange Commission voted in late August to abolish the general solicitation ban for hedge funds, private equity firms, and venture capitalists. This ban, in force since the 1930’s, while intended to protect investors, had the unintended consequence of keeping many potential investors in the dark with regard to available investment opportunities. That [...]

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Monitoring Hedge Fund Rules – a Critical Element for Successful Managers

November 22, 2012

The headline-grabbing scandals of the past decade have transformed the hedge fund industry and given rise to an emphasis on compliance. For new hedge fund managers the challenge is to become familiar with and constantly monitor the rules and regulatory proposals coming out of myriad agencies here and abroad that are ever increasing their oversight [...]

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The Compliance Responsibilities of a New Fund Manager

October 30, 2012

Starting a new hedge fund is an all-consuming enterprise, even for seasoned hedge fund managers who’ve been through the start-up process previously. In every direction there are time-critical issues that must be attended to, ranging from hedge fund marketing to get the endeavor off the ground to creating infrastructure, such as IT, staffing, organizing ongoing [...]

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