NYT – Large hedge funds, the secretive private investment outfits that use extensive borrowing to magnify the returns of their portfolio bets, will be required to report detailed information on their holdings to federal regulators under a new rule adopted by the Securities and Exchange Commission on Wednesday.
The purpose of the quarterly disclosure is to give regulators the ability to monitor the risks that the funds pose to the overall financial system, something that officials at the Federal Reserve, the Treasury Department and the S.E.C. did not have during the financial crisis.
