Majority Of Endowments And Foundations Support SEC’s Hedge Fund Proposals

by Carla Johnson, Investors Offshore.com

22 September 2004

According to the findings of a new survey, most US foundations and endowments support the Securities and Exchange Commission's plans to increase regulation of the hedge fund industry, Investor's Business Daily reports.

A poll of 46 foundations and endowments conducted by hedge fund group Hennessee Hedge revealed that 59% support the proposals championed by the SEC Chairman William Donaldson.

Under the SEC’s proposals, the definition of a client will be changed so that virtually all hedge funds will be required to register with the regulator and undergo a higher degree of scrutiny into their working practices.

Whilst smaller and more recent entrants to the hedge fund industry tended to support the SEC’s proposals, the majority of larger, more established funds are opposed to the them, the poll found.

Illustrating the increasingly active role that endowments are playing in the growth of the hedge fund industry, it was announced recently that Harvard University’s fund is now worth some $22.6 billion, after posting returns of 21.1% in the twelve months ending in June 2004.

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