After Dodging Many Bullets Hedge Funds Are Back in Regulators’ Sights

The hedge fund industry’s long history of avoiding tougher regulation may be coming to an end as the Obama administration and Congress look for ways to avoid another financial meltdown. Although it is not clear that hedge funds actually played much of a role in the current crisis the industry’s sagging performance combined with investors’ and regulators’ heightened demand for transparency will likely cause big changes in the way these secretive investment pools operate according to several Wharton faculty members.

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