This trend is actually reflected into the direction taken by money inflows. In fact, the largest hedge fund money managers have captured the biggest chunk of money inflows since the financial crisis of 2007-2008 whereas starting up a hedge fund has never been so difficult (the 2.4 tn$ in global assets of the hedge fund industry is managed by just 389 funds in a universe of more than 7000).
Hedge Funds are now strictly regulated by a range of methods worldwide.
In the US, Dodd Frank Wall Street Reform and the Consumer Protection Act of 2010 change the regulatory structure of the financial services industry. Hedge funds with more than 150 MUSD in assets are now required to register with the SEC. Most Commodity pool operators and commodity trading advisers must register with CFTC. In this regulatory environment, it is interesting to mention the Jumpstart Our Business Startups (JOBS) Act of 2012, which removes a prior ban on general solicitation and advertising by companies conducting private offerings – including hedge funds, provided the funds are only sold to sophisticated investors with net worth over 2.5MUSD.
This trend is actually reflected into the direction taken by money inflows. In fact, the largest hedge fund money managers have captured the biggest chunk of money inflows since the financial crisis of 2007-2008 whereas starting up a hedge fund has never been so difficult (the 2.4 tn$ in global assets of the hedge fund industry is managed by just 389 funds in a universe of more than 7000).
Hedge Funds are now strictly regulated by a range of methods worldwide.
In the US, Dodd Frank Wall Street Reform and the Consumer Protection Act of 2010 change the regulatory structure of the financial services industry. Hedge funds with more than 150 MUSD in assets are now required to register with the SEC. Most Commodity pool operators and commodity trading advisers must register with CFTC. In this regulatory environment, it is interesting to mention the Jumpstart Our Business Startups (JOBS) Act of 2012, which removes a prior ban on general solicitation and advertising by companies conducting private offerings – including hedge funds, provided the funds are only sold to sophisticated investors with net worth over 2.5MUSD.