Most Hedge Funds Already Registered With SEC

Feb 3 2009 | 1:48am ET

Hedge funds may soon be required to register with the Securities and Exchange Commission, but the move may not have the dramatic effects its proponents are hoping for. That’s because the majority of U.S. hedge funds—managing the overwhelming majority of U.S. hedge fund assets—are already registered with the regulatory agency.

According to Hedge Fund Research, almost 55% of hedge fund firms located in the U.S. are currently registered with the SEC, which has been voluntary since July 2006. What’s more, SEC-registered firms manage nearly 71% of all U.S.-based hedge fund capital, and about 60% of global hedge fund assets.

Most fund of hedge funds assets—nearly two-thirds, according to HFR—is also managed by SEC-registered firms.

Under a bill introduced in the U.S. Senate last week, hedge funds would once again be required to register—a policy supported by top members of President Barack Obama’s economic team—for the first time since a federal court struck down the SEC’s registration rule in June 2006. That rule went into effect in February 2006. Despite the court ruling, however, many hedge funds remained registered—and others have since registered—as investors, particularly large institutional investors, have pushed for greater transparency. Many institutional investors require hedge funds to be registered with the SEC before they will invest with them.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

Analyzing The Digital Footprint: What Operational Data Can Tell You About Future Risk

Mar 30 2017 | 3:38pm ET

Advances in technology and increasing operational complexity in search of higher...

 

From the current issue of