SEC posts my comments on hedge fund regulation

For those of you who follow such things, I reported you to a month ago that the SEC was considering making substantial changes to "accredited investor" rules, i.e. the rules governing who is permitted to participate in hedge funds and other types of investments. The SEC has posted my comments on their site, and you can read them here: http://www.sec.gov/comments/s7-25-06/rgkaminsky5279.htm What is more interesting to me, since I've posted those comments on this site before, is the absolute barrage of comments the SEC has received opposing their proposed changes! You can see the whole list of comments, then click on a name to read the comment here: http://www.sec.gov/comments/s7-25-06/s72506.shtml [You'll see that my comment was the first one received.] There is no doubt that John Mauldin's article on January 26th encouraged many people to write. I encourage all my readers to comment to the SEC to oppose the rule changes. Why should the government assume that you are too stupid to make your own investment decisions? The proposed rule change is here: http://www.sec.gov/rules/proposed/2006/33-8766.pdf And to comment it, go here: http://www.sec.gov/cgi-bin/ruling-comments?ruling=s72506&rule_path=/comments/s7-25-06&file_num=S7-25-06&action=Show_Form&title=Prohibition%20of%20Fraud%20by%20Advisers%20to%20Certain%20Pooled%20Investment%20Vehicles;%20Accredited%20Investors%20in%20Certain%20Private%20Investment%20Vehicles
  • Evan Andersen
    Comment from: Evan Andersen
    02/08/07 @ 06:34:26 am

    I have always taken the view that hedge funds need scrutiny and regulation. It is to the benefit of the consumer that there is full disclosure along the way. Although there are many myths about hedge funds that are not true, like they are full of lofty managers aimed at hurting the economy when if fact they are serving to make it more efficient and stable. Hedge Funds by name are kind of misleading. I think what needs to happen in American regulation is that we distinguish between what traditionally would be known as hedging, protecting ones capital, and an Investment Fund that takes positions in the markets. It would be nice to have some legislation clarify the difference. They have Investment Funds in Ireland and I think that this is what they should properly be called. Evan Andersen, Lydia Capital