This study aims to look at the definition of the group of alternative investments commonly known as ‘hedge funds’, in order to better understand why regulatory bodies the world over are vehemently working on introducing new legislation and guidelines as a means of maintaining market security and integrity in order to ensure adequate investor protection. This study posits that the two most viable options available to regulatory bodies to ensure effective implementation of these changes are (i) to either further restrict access to hedge funds and thereby curb their ‘retailization’ and/or (ii) to introduce rigorous levels of disclosure on the part of hedge funds and their intermediaries.
It is the objective of this study to establish that for either of these options to be attained, tangible improvement in both the quantity and quality of information disclosure from hedge funds and their intermediaries about their positions, strategies and exposures in a manner that would enable them to continue to provide the market efficiency-enhancing services that they currently offer. After introducing all the key issues that have motivated this resolve, the study looks at the current regulatory environment and the challenges facing regulators such as the varying degrees of banking freedom offered by different states and jurisdictions. Proposed changes to current legislation are also considered across several jurisdictions. The results from the local market field study set the platform for recommendations to be investigated in future studies in order to provide guidelines for the supervision of the hedge fund industry.
Inhaltsverzeichnis (Table of Contents)
- CHAPTER 1
- INTRODUCTION
- Statement of Problem
- Aims of the research
- Importance of the study
- Research methodology
- Scope and limitations of the study
- Brief overview of the study
- Abbreviations and acronyms
- CHAPTER 2
- DEFINITION AND DESCRIPTION OF HEDGE FUNDS
- The origin of hedge funds
- The Investment process
- Qualification requirements for US hedge funds
- Investor restrictions for US hedge funds
- Hedge fund structures
- Investment strategies and styles
- Advantages and benefits of hedge funds
- Summary
- CHAPTER 3
- REPORTING STANDARDS AND REQUIREMENTS
- Introduction
- Criticism of hedge funds
- Transparency
- Standards and requirements
- Investor due diligence
- Investment mandate adherence
- Benchmarking and performance measurement
- Valuation of Assets
- Return Calculation
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study investigates the definition of hedge funds to better understand why regulatory bodies worldwide are striving to introduce new legislation and guidelines to maintain market security and integrity and ensure adequate investor protection. The study focuses on the two most viable options available to regulatory bodies to ensure effective implementation of these changes: (i) further restrict access to hedge funds, thus curbing their ‘retailization,' or (ii) introduce rigorous levels of disclosure from hedge funds and their intermediaries.
- Definition and characteristics of hedge funds
- Regulatory challenges facing hedge funds
- The need for improved disclosure requirements
- The impact of hedge fund regulations on market efficiency
- The role of transparency in investor protection
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 1 provides an introduction to the study, outlining the problem statement, research aims, importance, methodology, scope, limitations, and a brief overview of the study. Chapter 2 delves into the definition and description of hedge funds, tracing their origins and exploring the investment process, including qualification requirements for US hedge funds, investor restrictions, structures, investment strategies, and advantages. The chapter concludes with a summary of key points.
Chapter 3 examines reporting standards and requirements for hedge funds, addressing criticism of the industry and emphasizing the importance of transparency. This chapter further explores standards and requirements, investor due diligence, adherence to investment mandates, and benchmarking and performance measurement, including valuation of assets and return calculation.
Schlüsselwörter (Keywords)
The core keywords and focus topics of this study include hedge funds, alternative investments, market security, investor protection, regulatory challenges, disclosure requirements, transparency, transparency, performance measurement, valuation of assets, and return calculation.
- Quote paper
- LL.M. Russell Mutingwende (Author), 2005, The Challenge of Reigning-in Hedge Funds through Regulation and the Need to Improve Disclosure Requirements, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/86639
