…On Tuesday we learned that George Soros was returning all of the capital of outside investors to his fund, following a path laid down by legendary investors like Stanley Druckenmiller and Carl Icahn.
By closing their funds to outside investors, these managers will be able to escape attempts to regulate them. They won’t be classified as hedge funds anymore. Despite their billions of dollars under management, they’ll simply be private investors or family funds.
Today we learn that Steve Cohen, the founder of SAC Capital, is closing his flagship fund to outside investors. He hasn’t yet decided to refund their capital. For now he’s just not allowing them to contribute more.
…This is another example of hedge fund regulation backfiring. Instead of providing more transparency, Dodd-Frank is driving hedge funds deeper into the shadows. It’s unintended consequences gone wild.
What? Government tried to fix a problem and it isn’t working as they had planned. I’m shocked! Shocked I tell ya!
How far off was the CBO scoring on this boondoogle?
LOL!
When Dodd and Frank push for something there is always unintended consequences. Affordable housing anyone? How about Fannie and Freddy.
One more reason for government to butt out. They just keep heaping more and more regulations, making more and more problems. Knock it off the books and start from scratch.
Who could have seen this coming?
Instead of providing more transparency, Dodd-Frank is driving hedge funds deeper into the shadows.
Dodd-Frank driving deeper into the shadows. Hum.