Economic Times – Hedge fund legend George Soros has suggested regulatory red tape is leading him to bow out of investing other people’s money. He’s not alone. Stanley Druckenmiller and Carl Icahn made similar noises when handing back investors’ money. But with only trivial sums of outside cash, none of these billionaires needed much encouragement to do so. Rules are a handy scapegoat, but on their own they’re not chasing away industry lions.
True, the hedge fund industry didn’t entirely escape the regulatory blitz that followed the financial crisis. As part of the Dodd-Frank financial reform act, funds that invest outside money will have to register with the Securities and Exchange Commission by the end of the first quarter of 2012, providing details of their investors, employees, assets and potential conflicts of interest.
