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Full-Text Articles in Law

Private Fund Adviser Registration Act Hr-3818, Anita Krug Nov 2009

Private Fund Adviser Registration Act Hr-3818, Anita Krug

All Faculty Scholarship

This paper comments on the Obama administration's 2009 proposal for the regulation of hedge fund investment advisers.


Financial Regulatory Reform And Private Funds, Anita Krug Jul 2009

Financial Regulatory Reform And Private Funds, Anita Krug

All Faculty Scholarship

This white paper comments on the Obama administration's June 2009 proposal for the regulation of hedge fund investment advisers.


The Hedge Fund Transparency Act Of 2009, Anita Krug Feb 2009

The Hedge Fund Transparency Act Of 2009, Anita Krug

All Faculty Scholarship

This white paper provides a review and critique of a bill introduced by Senators Charles Grassley (R-Iowa) and Carl Levin (D-Mich.) in the Senate in early 2009 that, if enacted, would have imposed certain registration and disclosure requirements on hedge funds and certain other private funds.


Hedge Fund Activism In The Enforcement Of Bondholder Rights, Marcel Kahan, Edward B. Rock Jan 2009

Hedge Fund Activism In The Enforcement Of Bondholder Rights, Marcel Kahan, Edward B. Rock

All Faculty Scholarship

Activist hedge funds have transformed how bondholders respond to violations of their contractual rights. Insurance companies and mutual funds, the traditional investors in bonds, often slept on their rights and turned active only little and late. Hedge funds, by contrast, seek out opportunities for activism in order to make profits. In the wake of their activism, hedge funds have not only benefitted themselves, but their fellow bondholders as well. Alas, the remedy scheme for violations of bondholders rights – in particular, the centrality of the acceleration remedy – introduces its own set of imperfections. When treasury interest rates have increased …


The Law And Economics Of Hedge Funds: Financial Innovation And Investor Protection, Houman B. Shadab Jan 2009

The Law And Economics Of Hedge Funds: Financial Innovation And Investor Protection, Houman B. Shadab

Articles & Chapters

A persistent theme underlying contemporary debates about financial regulation is how to protect investors from the growing complexity of financial markets, new risks, and other changes brought about by financial innovation. Increasingly relevant to this debate are the leading innovators of complex investment strategies known as hedge funds. A hedge fund is a private investment company that is not subject to the full range of restrictions on investment activities and disclosure obligations imposed by the federal securities laws, that compensates management in part with a fee based on annual profits, and typically engages in the active trading of financial instruments. …


Hedge Funds And The Financial Crisis, Houman B. Shadab Jan 2009

Hedge Funds And The Financial Crisis, Houman B. Shadab

Articles & Chapters

The performance of hedge funds during the financial crisis suggests that wide-ranging financial regulation is not always necessary to advance investor protection and financial stability. While 2008 was a year of record hedge fund losses and investor withdrawals that came about in part because many hedge fund managers failed to adequately respond to the financial crisis, the hedge fund industry significantly outperformed the heavily regulated mutual fund sector and, unlike the banking industry, was never in jeopardy of collapsing. Hedge funds did not cause or meaningfully exacerbate the financial crisis and in fact have reduced its impact and are helping …


Coming Together After The Crisis: Global Convergence Of Private Equity And Hedge Funds, Houman B. Shadab Jan 2009

Coming Together After The Crisis: Global Convergence Of Private Equity And Hedge Funds, Houman B. Shadab

Articles & Chapters

Prior to the subprime-initiated financial crisis, there was a trend within the alternative investment industry towards the convergence of certain private equity and hedge fund strategies and structures. This brief article suggests that although the financial crisis will slow the process of convergence, the trend toward convergence will ultimately continue and strengthen, albeit in some ways along a different trajectory than before the crisis and with some important variations across national boundaries.