Following severe losses incurred by many in 2008, hedge funds find themselves facing new risks to their businesses. A number of funds have responded to illiquid market conditions by raising gates and imposing suspensions on redemptions. In many cases, funds have been split into liquid and illiquid portfolios to address the risks associated with increasingly illiquid and volatile markets. These actions have not gone unchallenged by investors and have led to discussions regarding potential changes to hedge fund fees and structures going forward. On the regulatory front, the SEC is reviewing its enforcement agenda and inspection program in the wake of the Madoff scandal for ways to improve its ability to detect fraudulent activity. Meanwhile, federal banking authorities are considering major changes in the regulatory framework for the entire financial industry that may fundamentally alter the regulatory treatment of hedge funds. At this day-long program, you will hear from distinguished experts about these and other developments affecting the industry.
Topics to be discussed:
- How are hedge funds typically formed and managed?
- How will new financial regulations likely affect hedge funds?
- How will hedge funds survive the losses of 2008?
- What risks result from the imposition of gates and suspensions?
- What happens when a hedge fund dissolves?
- How can hedge funds improve their prime brokerage relationships?
To learn more, please visit the Practising Law Institute CLE Program Hedge Funds site.