Regulate investment hedge funds, and they will no longer be considered hedge funds in the true sense. Not by the definition of what an investment hedge fund does for an investor.
Hedge fund managers need secrecy in order to trade. If they tip off their intentions in advance, as strict regulation will promote, their efforts and their objectives will be neutralized. Other investors will then be able to parallel or counter strategy, to make any proposed hedging worthless or dangerous.
Besides, hedge fund activity had little to do with the financial downturn of 2008.
Over-regulation is another instance of the Obama administration’s jousting at windmills for no real purpose, other than catering to its anti-business, anti-finance industry constituency.
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