To Hedge Gets Harder

The SEC proposed a rule in December that would raise the net worth requirements of investors in hedge funds to $2.5 million from $1 million, not including the value of one’s home.

The SEC proposed a rule in December that would raise the net worth requirements of investors in hedge funds to $2.5 million from $1 million, not including the value of one’s home. The old barrier to entry has been in place since 1982, but SEC Chairman Christopher Cox has expressed concern about the “retailization” of hedge funds since joining the SEC. Following a 60-day comment period the regulator will decide whether to finalize the rule.

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