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If there are any hedge funds left at the end of the great coronavirus plague of 2020 (and that’s no sure thing), we have some good news for that battered industry. Of those humans who survive the pandemic and still have money to invest, a greater proportion will be permitted to take their chances on alts.

A plan by the Securities & Exchange Commission to expand the universe of investors accredited to invest in alternative investments such as private equity, venture capital, and hedge funds could be finalized this year….

The comment period for the SEC action ends on April 24…. Craig Siegenthaler, a Credit Suisse analyst, said in a report that the final proposal could be released by the third quarter.

Of course, whether this actually increases the total number of accredited investors or just serves to make up for those lost to, uh, attrition, remains to be seen.

SEC Plan to Let In More Hedge Fund Investors May Be Finalized This Year [Barron’s]
Prophet Capital to Dissolve Hedge Fund Amid ‘Extreme Volatility’ [NYT]
SEB Puts Hedge Fund Into Liquidation: HedgeNordic [Bloomberg Law]
Credit Hedge Fund Suspends Redemptions in Sign of Market Stress [WSJ]


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Jay Clayton Paints His Masterpiece

An accredited investor definition that keeps their numbers about constant and decreases the likelihood of people coming crying to the SEC? It’s perfect.

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Literally No One Likes SEC Hedge Fund Secrecy Plan, Except The People Who Run The SEC

That’s a big, “Thanks, but no thanks” from the hedge funds on getting rid of most 13Fs.

The SEC Is Giving Money Back, You Guys

The SEC is writing one hedge fund a check for $21.5M and the memo line says "Oops! Our bad."

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SEC Expects To Shame Shameless Industry Into Slashing Shameful Fee Structures

You can make a hedge fund ‘fess up, but you can’t stop it from making its clients cover the costs.

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So Maybe The SEC Does Need Whistleblowers’ Help?

One soon-to-be-defunct hedge fund was doing all sorts of allegedly improper accounting while the regulator watched.

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Stale Hedge Fund Holdings Reports Saved From SEC’s Senseless Scalpel

Getting rid of most 13Fs proves too unpopular even for someone with nothing to lose like Jay Clayton.


SPACs May Be Illegal, So Make The Most Of Them While You Can

Time to cut a deal before a judge calls time on the whole party, although that’s probably not going to happen.