Regulation’s coming,
the lawyer’s getting fat,
please put a penny
in the hedge fund’s hat.

—Craig Reeves, director of a hedge fund, writing in January 2005

Reeves was anticipating some degree of regulation of U.S. hedge funds by the Securities and Exchange Commission (SEC) that was to begin in February 2005. However, his concern proved to be unfounded. A federal court in 2006 tossed out the SEC's interpretation of the Investment Advisors Act of 1940 under which it had asserted its oversight authority.

Tags: finance hedge funds humor