Hedge funds are shedding their “shadowy” reputation thanks to new Dodd Frank and JOBS Act disclosure rules, Securities and Exchange Commission Chairman Mary Jo White said today.
“More than ever before, the hedge fund industry as a whole is experiencing dynamic change—moving from what some would say was a secretive industry, to a widely recognized and influential group of investment managers,” White said at a Managed Funds Association conference in New York City.
White called upon funds to help the SEC in its effort to remove "bad actors" from the industry, including people involved with insider trading; false advertising and performance claims; overvaluing assets in order to charge excessive fees; benefitting favored investors at the expense of other investors; and using private fund assets for the personal benefit of the fund’s advisor.
“None of us should stand for it,” she said.
White said about 4,000 registered investment advisors advise private funds, and 40 percent of RIAs manage one or more hedge funds or other private funds.
