September 14, 2006

Hedge Fund Rules Need Careful Consideration

Experts believe that any possible regulation of the hedge fund industry needs careful consideration. The question of regulation of hedge funds has to be carefully considered, and the Treasury Department is very active in a powerful dialogue in Washington. There is no denying that hedge funds play an increasingly important role in financial markets.

Hedge funds provide the market with increased liquidity. At the same time, they also pose risks to the market with the potential to be disruptive if funds excessively concentrate positions. Those potential risks do not automatically mean that there is a need for direct government oversight of hedge funds. Such funds are investment partnerships that invest in ways not available to traditional mutual funds.

My previous post titled "Hedge Fund Hurricane" provides some interesting information on hedge funds.

--
Did you enjoy this post?

September 14, 2006 in Regulation | Permalink




Comments

Post a comment






« Hedge Fund Money in Political Campaign | Main | Hedge Fund Broker Indicted »