Powder Blue Report

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Friday, November 11, 2005

Dangers Of Hedge Funds

The regulation of financial markets has been changing a lot recently. This especially true with hedge funds. Professor Bainbridge has written an excellent post about how these new SEC regulations on hedge funds are reducing clients' liquidity in a crisis. Basically the new regs state that you have to lock up your investment for a period of two years before it is liquid in a hedge fund. Since I raise money for Commodity Trading Advisors, I have a huge selling advantage over hedge funds because a managed futures investment is 100% liquid. You don't have to tie up your money for any length of time.


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