WEST PALM BEACH, FL (HEDGECO.NET) – According to published reports, some of the new hedge fund regulations will mandate that hedge funds be required to register with the SEC. Such registration wouldimply that all hedge fund advisers would be automatically subjected to routine SEC oversight. While many hedge fund industry watchdog groups think such an idea is unnecessary, others think suchscenario could bring some benefits to the hedge fund industry as well.
One of such benefits is that financial planners may increase their hedge fund portfolios upon registration of such funds. Currently not many financial planners invest or recommend hedge fund vehicles, according to George Strickland, President of Financial Synergies Advisory Inc. in Houston Texas. He believes that part of the problem why many financial planners have not largely implemented hedge fund strategies comes from insufficient transparency provisions particularly for hedge fund of funds.
Mr. Strickland, a certified financial planner said he oversees about US$100 million investment portfolio, but only US$1 million of such assets are invested with hedge fund managers. Strickland said hedge fund advisers deserve to be regulated because they render investment advice as well.
The managing director of Rydex Capital Partners, Jeff Joseph commenting on the new SEC proposals said, �As far as the hedge fund industry, nobody finds this [report proposal] to be particularly onerous. It might assist in the mainstreaming or retailization of the hedge fund industry�, he added, �It certainly makes the products more accessible for investors that currently don’t embrace hedge funds.”
Investment planners applaud the SEC�s new recommendations relating to regulation of hedge funds, and many are gearing up to increase their hedge fund percentage of their overall management obligations when such proposals become law.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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