Wednesday, July 7, 2004

Investors use hedge funds more, but expect less

Investors use hedge funds more, but expect less

The SEC says that hedge funds need to be regulated because too many investors are becoming involved. Recently a new justification is being floated - that too much pension money is going into the funds. implying that more of the "average" investors' funds are a risk, and that pension managers need the protection of the SEC.

Well, given the stellar job that the SEC did with Tyco, Enron, the research analysts and late trading in mutual funds, we can understand why some are not so sure that SEC regulation is the solution. Assuming of course that there is a problem.

And pension funds have always been permited to invest in hedge funds - they are clearly one class of investors who are qualified to do so - professionally managed money in professionally managed funds.

If there was any doubt about the ability of pension fund managers, and other sophisticated investors having the ability to make investment decisions for themselves, with the protection of an all knowing big brother, this article sheds some light on the topic.

But it appears that the pension funds can take care of themselves.
Post a Comment