Friday, June 20, 2008

Hedge Fund US Regulation

The typical public investment company in the United States is required to be registered with the U.S. Securities and Exchange Commission. Mutual funds are the most common type of registered investment companies. Aside from registration and reporting requirements, investment companies are subject to strict limitations on short-selling and the use of leverage. There are other limitations and restrictions placed on public investment company managers, including the prohibition on charging incentive or performance fees. This is of course, the polar opposite from hedge funds.

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