As the worldwide economic crisis gets sorted out piece by piece, on the hedge fund regulation front, we see some common themes emerging worldwide as well. The Securities and Futures Commission of Hong Kong issued a Circular on October 27 listing a number of concerns regarding hedge funds. Here’s a sampling: -Hedge Funds should [...]
The “general buzz” is that more regulation is on the horizon for hedge funds. We’ve heard industry chatter and some passing references to the need to regulate in recent congressional hearings. These references have been crystalized in a provision of the recently passed Emergency Economic Stabilization Act of 2008 (“TARP” bill) itself. The TARP bill has a provision [...]
Over the past weeks of market turmoil, we have seen reports of hedge funds taking large defensive cash positions in order to preserve capital. For example, the Wall Street Journal reported earlier this week that Steve Cohen’s SAC Capital is half in cash and other short term instruments. While understandable, compliance professionals need to be alert [...]
It’s the question everyone’s asking in the hedge fund community… can hedge funds avail themselves of the Troubled Asset Relief Program (“TARP”)authorized under the Emergency Economic Stabilization Act? Under TARP, the government will purchase “troubled assets” from “financial institutions” in order to get them off the books of those institutions and thereby shore up the [...]
