JOURNAL OF BUSINESS ENTREPRENEURSHIP & THE LAW
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Too Much of a Good Thing: How Much Should Hedge Funds Be Required to Disclose? | Author: Daniel Etlinger

Too Much of a Good Thing: How Much Should Hedge Funds Be Required to Disclose? | Author: Daniel Etlinger

This Article critically evaluates these arguments before ultimately concluding that 13Fs are critical to monitoring the security markets and informing investors. Part I reviews the construction and application of 13(f). This part will first discuss the legislative history and intent behind Rule 13(f) before discussing how Congress, courts and the SEC have constructed 13(f). Part II then provides a general overview of hedge funds and their peculiar position within the existing regulatory framework. Part III explores a trade secret argument to 13(f). Part IV examines a takings claim against application of 13(f). And finally, Part V looks at related disclosure proposals. Most proposals are not feasible in their current form due to costs or undue burdens on the hedge fund industry. However, two proposals that make a strong case are creating a private market intermediary and changing the requirements for accredited natural persons.

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