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Hedge Funds Face Pressure To Reform

Hedge funds are heading into a rough few weeks. Many funds are looking at some pretty average returns this year--and if that's not bad enough--the industry faces U.S. Congressional hearings starting tomorrow on regulations and insider trading.

William Galvin is Secretary of the Commonwealth of Massachusetts. Tom Curran is a securities lawyer and partner with Ganfer and Shore. Both men appeared on "Street Signs" and have different opinions on what needs--or doesn't need--to be done with hedge funds.

Galvin says hedge funds are marketed to people who shouldn't be investing in them. And he says there should be minimum investments and the funds should be registered. He said there needs to be total transparency when it comes to hedge funds.

Curran is completely on the other side--saying there is no need for minimum investments. He said Congress should proceed cautiously on hedge funds--considering the role they play in the U.S. economy. He said there are a lot of myths when it comes to hedge funds--and that the criticism is over blown.

FYI: There are some 9,228 hedge funds with nearly $1.3 trillion dollars invested in them.