The Securities and Exchange Commission appears to have its sights on activist investors, but the hedge fund industry isn't concerned about a crippling crackdown.
The SEC is investigating whether some activist investors illegally teamed up to target companies without properly disclosing their alliances, The Wall Street Journal reported late Thursday, citing unnamed sources.
The SEC declined to comment to CNBC.com on the report. But hedge fund managers and their clients contacted Friday didn't react with alarm.
"It doesn't concern me," said one activist hedge fund client, noting that coordination was not a common strategy and any group impacted would be small. "It won't affect their ability to operate."
"It's not scary," added an activist manager about news of SEC investigations. "I wish they would spend their time on more useful things."