Riding Hedge Fund's Coattails

摘要

Last year, the Securities and Exchange Commission revealed that, beginning Feb. 1, 2006, it would require hedge fund managers that handle more than $25 million to register under the Investment Advisors Act of 1904. With registration removing the veil of secrecy that had surrounded hedge funds, many believe hedge funds will find themselves awash with pension and mutual fund cash that had previously been reserved for more conservative investments. As hedge funds prepare for the influx of newfound cash, many are shoring up their technology and operations. That could mean a serious boom to the hedge fund's traditional service providers: prime brokers, third-party administrators, executing brokers and vendors.