Top Hedge Funds Holding Off On SEC Registration

Mar 30 2011 | 1:15pm ET

Some of the world's biggest hedge funds appear to have no intention of being under the Securities and Exchange Commission's thumb for one day longer than they have to.

Nearly one-third of the 220 hedge funds that made AR magazine's billion-dollar club this year—managing about a quarter of those firms' total assets—have yet to register with the U.S. regulator. Hedge funds with $150 million or more in assets or at least 15 clients in the U.S. are required to register by this summer.

Among the 66 still sitting on their hands are King Street Capital Management, SAC Capital Advisors, Soros Fund Management and Viking Global Investors, Dow Jones Newswires reports.

But if those firms—which have until June 6 to submit their applications—expect the SEC to change its mind in the next two months, they've got another think coming.

"Some private funds are in a state of denial, hoping for some form of delay in the rules," National Regulatory Services' John Gebauer said. "But the likelihood of the legislation being taken back is nil."

"Private funds will be ill-advised to expect this rule will not happen."


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...