Commentary

Robert Schuessler
Traders Magazine Online News

A Smarter Monkey

In this contributed piece, TIM noted that some traders do better than others when using data that has been run through certain analysis - that is, have used some form of machine learning to assist them.

Traders Poll

In his first public speech, SEC Chair Jay Clayton deviated from his prepared remarks and offered his own "off the cuff" comments on market issues. Do you like this change of pace?




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January 1, 2005

Lawsuits for SEC Hedge Fund Registration

By Gregory Bresiger

The SEC's decision to require hedge fund registration has resulted in a flurry of critical comments and threats of legal action.

One early critic was Phillip Goldstein, a portfolio manager for Opportunity Partners. He recently said he's going to file a lawsuit on behalf of the advisers to the $73 million fund. Another early critic of the SEC decision was the U.S. Chamber of Commerce.

Goldstein said that his lawsuit would contend that the SEC, redefining what an adviser is, overstepped its powers and that the commission never allowed for a sufficient comment period before it voted.

An attorney, who didn't want to be quoted by name, said the decision could turn on, "whether the SEC went too far. What they were doing in regulating hedge funds was to change the definitions of what constitutes a client. This is key. I think this is Congress' call, not the SEC, but I realize that this could be a very tough issue."

Meanwhile, both the Wall Street Journal and the New York Times have criticized the decision. The Journal charged that SEC Chairman William Donaldson has shown a lack of understanding of hedge funds, characterizing the decision as "Hedge Fund Hubris." The Times, in an editorial, said Donaldson had "overstated" the need for regulation.