biomund

Are Hedge Funds a Risk to the System? The Proof is in the Provenge

When you say that the arrogance of the hedge funds is the problem but then recommend that these same entities should not be subject to regulation and review is inconsistent. If corporations and mutual funds have reporting and disclosure requirements why shouldn't hedge funds be similarly be monitored.

A hedge fund investor has a right to know what the degree of concentration and corresponding risk is before making an informed decision. Mutual funds have to abide by rules and it is not seen as an unnecessary intrusion on their investment strategies. Hedge funds have the financial ability to cause serious damage to our financial system if permitted to operate under a wild west scenario.