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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...