As we all know, the investment management and hedge fund industries will be undergoing a sea change as Congress and the SEC and other government agencies respond to many events which have completely affected and disjointed our capital markets and economy.  I believe that it is up to the hedge fund community to show leadership in these times and help to create a solution to the issues which affect both managers and investors – namely, probable future hedge fund regulations.

In the coming weeks I will be promulgating proposals for the hedge fund community (and the SEC and Congress) to consider during the discussion of the best way to impose future regulations.  Senatory Grassley has specifically stated he plans to renew hedge fund registration requirements.  As recent congressional testimony indicates, the hedge fund community is open to reasonable regulations.  The issues faced by the community (and investors) cannot be solved solely by the SEC, Congress or the hedge fund community disparately, but by all of these groups working together.

I recently read a speech, posted below, by Linda Chatman Thomsen, the SEC’s Director of the Division of Enforcement.  This speech provides a very inspirational (and ideal) view of the SEC which makes me proud in many respects (especially when I realize that the SEC is there to protect people like my parents and grandparents).  I believe that by working with the SEC toward mutual goals the hedge fund industry will be able to (i) build a solid foundation for future growth and (ii) provide the investing public in general with a positive image of the industry.    Continue reading →