Regulating Investment Hedge Funds is Impractical for the Hedge Funds
If you regulate investment hedge funds, they will no longer be hedge funds in the true sense of the term and by the definition of what a hedge fund does for an investor.
Hedge fund managers need secrecy in order to do their trading. If they tip off their intentions in advance as strict regulation will tend to promote, their efforts will be neutralized and their objectives overcome. Other investors will be able to parallel or counter management’s strategy to make any hedging worthless or dangerous.
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