The Challenge of Hedge Fund Regulation

6 Pages Posted: 6 Apr 2007


Currently en vogue concerns about hedge funds are not nearly as substantial as is often claimed. Moreover, the funds themselves are reducing their risks to investors and the broader markets, in accordance with investor demands. As hedge funds benefit the broader market by mitigating price downturns, bearing risks that others will not, making securities more liquid, and ferreting out inefficiencies, policymakers should consider whether stricter regulation of hedge funds could do more harm than good.

Keywords: The Challenge of Hedge Fund Regulation, regulations, registration and disclosure requirements, Securities Act, Securities and Exchange Act, Investment Advisers Act, Investment Company Act, ERISA, systemic risk, fund failure, LTCM, trends, leverage, risk management, transparency,SEC

JEL Classification: G38, G23, G12

Suggested Citation

Shadab, Houman B., The Challenge of Hedge Fund Regulation. Regulation, Vol. 30, No. 1, pp. 36-41, Spring 2007, Available at SSRN:

Houman B. Shadab (Contact Author)

New York Law School ( email )

185 W. Broadway
New York, NY 10013
United States


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