April 11, 2003 |
Hedge funds need more government scrutiny to protect less sophisticated investors, Securities and Exchange Commission Chairman William Donaldson said Thursday as the Senate began examining the $600-billion industry. Hedge funds, which were meant for the wealthy, have drawn in more middle-class investors seeking higher rates of return during the market slump of the last several years.
October 25, 2006 |
Americans are betting that hedge funds will make them rich even at a time when these once-highflying portfolios are lagging behind the broader market. Research firm Morningstar Inc. polled 600 advisors in August and found that 65% of them expected more than double-digit growth in alternative investments, which include hedge funds, and that 67% of them reported that more than 10% of their clients were already using alternative investments.
May 11, 2004 |
The average hedge fund lost money in April and slipped into the red for the first time this year, but these loosely regulated investment pools still beat the broader market, new data released Monday show. Last month, hedge funds lost 0.78% after eking out a 0.31% gain in March, according to Hennessee Group. Hedge funds are still up 2.54% in the first four months of the year. In April, the blue-chip Dow Jones industrial average slipped 1.28%, while the technology-heavy Nasdaq fell 3.71%.
January 25, 2003 |
The NASD, formerly known as the National Assn. of Securities Dealers, warned its members that hedge funds must not be sold to average investors even as demand surges for these loosely regulated funds. NASD, the securities industry's self-regulatory agency, said it is concerned that brokerage firms might be putting investors into potentially risky funds without telling them that hedge funds can quickly make or lose a lot of money.
July 10, 2007 |
The number of hedge funds subject to inspection by the Securities and Exchange Commission fell 21% in the year since a federal appeals court rejected the agency's effort to require more funds to register. There are 1,977 hedge funds signed up with the SEC, down from about 2,500 a year ago, agency spokesman John Nester said. The U.S. Court of Appeals in Washington struck down the SEC's oversight requirement in June 2006, saying the agency overstepped its authority.
August 17, 2004 |
Hedge funds that invest in stocks took in a net $13.5 billion in the second quarter, a record, with many of the new investors apparently focused on reducing their portfolio volatility, data released Monday showed. TASS Research, a unit of New York-based hedge fund group Tremont Capital Management Inc., said so-called long/short equity funds attracted the bulk of all money sent to these loosely regulated investment pools, which promise better returns than traditional funds.
July 18, 2003 |
The Securities and Exchange Commission is studying a plan requiring hedge funds to register with it and submit to regulation, sources close to the SEC said Thursday. As it moves toward reining in the loosely regulated investment pools popular with financial institutions and the wealthy, the SEC also is edging toward ordering hedge funds to begin satisfying basic disclosure standards, the sources said. The commission has been investigating the $600-billion hedge fund industry for months.
November 9, 2006 |
Federal regulators Wednesday filed civil fraud charges against Edward Ehee, the head of three San Francisco-based hedge funds, accusing him of funneling millions of dollars from investors nationwide into his own mortgage payments, vacations and bank accounts.
July 15, 2004 |
A deeply divided Securities and Exchange Commission on Wednesday proposed stronger oversight of hedge funds, a fast-growing, $850-billion industry that regulators say poses unknown risks to investors and the economy. Under the proposal, most hedge funds -- investment pools that embrace sophisticated and potentially risky strategies -- would have to register with the SEC, opening the door to greater scrutiny of their activities.
May 23, 2003 |
The Securities and Exchange Commission will consider making "properly vetted" hedge funds open to retail investors, a step that may require government inspections of the funds, SEC Chairman William Donaldson said Thursday. Donaldson said SEC inspections of hedge funds may satisfy concerns that these private investment pools for the well-to-do are too risky for lower-income individuals.