Hedge funds structure enables them to avoid regulatory scrutiny and leads to less transparency than other investment companies. What specifically in their structure defines a hedge fund ?
Basically exempt from registering with the SEC.
Is that because they are set up as partnerships or some specific legal entity like that ? How can they be unregulated ?
cfa09 Wrote: ------------------------------------------------------- > Is that because they are set up as partnerships or > some specific legal entity like that ? > > How can they be unregulated ? Because they – like many AFers – think that GIPS suck!
essentially they arent open to the public . ie you have to be a high networth (sophisticated ) investor to be able to invest in hedge funds directly. there is often a minimum amount you must be able to invest - all this makes it closed to the avg joe. so the regulators leave them alone.
caveat emptor did I spell that right?