As Goldman Sachs faced investigation and Democrats and Republicans battle over financial regulation in the house it appears hedge funds are thriving despite the threat of more stringent rules.
Investors are still putting money into hedge funds and new fund formation is up significantly, Stuart Feffer, the co-CEO of LaCrosse Global Fund Services, said. LaCrosse Global Fund Services is a company that offers "one-stop shopping" for all of a fund's operational and administrative needs and is encouraged by this trend.
"Investors are a bit ahead of the regulators on this and are already using more onshore vehicles, managed accounts, and services for enhanced transparency" Feffer said.
Bank Regulation the Hey for Hedge Funds
With the EU and US attempting to find a set of rules that will effectively regulate the hedge fund industry globally, many industry watchers are worried that a clampdown could be very bad for the sector. This could be true, but hedge funds will be able to cope with any changes, Feffer said.