New York – There may be ways for U.S. lawmakers to keep a closer eye on hedge funds, the loosely regulated portfolios, without forcing them to register with the government, hedge fund manager and short seller James Chanos said on Wednesday.
Concern about hedge funds’ potentially risky investment styles is growing anew in Washington as the industry’s assets have doubled to roughly $2 trillion, especially as more pension funds invest the retirement benefits of average Americans.
While some lawmakers may again push for hedge funds to register with the U.S. Securities and Exchange Commission — a federal court last summer vacated the SEC’s registration rule — hedge fund managers generally agree that registration is no cure-all to eliminate risk.
