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Client Alert

SEC Issues Report on Hedge Funds and Proposes Rule Implementing Expense Disclosure Recommendation

October 01, 2003

Investment Management Practice Group

Securities and Exchange Commission Chairman William H. Donaldson presented a highly anticipated report on hedge funds on September 29, 2003. Commission staff prepared the report, entitled Implications of the Growth of Hedge Funds, which includes several significant recommendations for increasing the oversight of hedge funds and their investment advisers. The Commissions decision to review the hedge fund industry and to request a staff report was based primarily on the significant growth in hedge fund assets and the Commissions lack of information about hedge funds.

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