September 15, 2004
I write in opposition to the SECs proposal to require hedge fund managers to register as investment advisers. I share Federal Reserve Chairman Alan Greenspans view that the current system of voluntary registration is appropriate and that the SECs scarce resources may be used more productively in other areas. Hedge fund investors are by definition wealthy and sophisticated and fully capable of assessing the risks they are taking by investing in funds whose managers are not registered as investment advisers.