Securities: Hedge Fund Report Gets Mixed Reviews

The Bush administration's decision that there is no need for greater government oversight of the hedge fund industry and other private investment groups was met with mixed feelings. Wall Street supported the decision, while some lawmakers and industry observers complained that the report's recommendations were too weak. The administration recommended that investors, hedge fund companies, and lenders were capable of managing themselves by following simple guidelines.

Hedge Fund Report Draws Mixed Reactions

The guidelines say that investors should not take risks that they cannot tolerate and should carefully evaluate the strategies and management skills of hedge funds. Richard Blumenthal, the Connecticut attorney general, said that the new guidelines did not protect investors. These vague recommendations lack substance and specifics, making them unenforceable,” he said in a statement. “In a perfect world, everyone would already follow these guidelines, but in the real world we need real protections.”