From the perspective of hedge fund managers, the Dodd-Frank Act is, in so many ways, a huge drag. The law requires them to register with the Securities and Exchange Commission. To supply reams of sensitive data on trading positions. To screen potential investors more carefully. To hire compliance officer after compliance officer. How could all of this not eat into profits and hamstring competitiveness?
Now there are some early data to weigh these fears against. Wulf Haal, a law professor at the University of St. Thomas in Minneapolis, has released what he says is the first survey of fund advisers to be conducted after the SEC’s March 30 registration deadline. His findings: Despite their grumbling, funds are taking the new regulatory burdens in stride.