Hedge Funds’ Shot at Keeping Stock Investments Secret Fades
- Agency drops plan to raise reporting threshold to $3.5 billion
- Public companies said 13F plan would have hurt transparency
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U.S. regulators are shelving a controversial plan to allow most hedge funds to keep their stock investments secret after public companies and other critics blasted the proposal as a major blow to market transparency, said people familiar with the matter.
Under the rule change the Securities and Exchange Commission was considering, only fund managers who owned at least $3.5 billion in equities would have had to publicly report their holdings, a dramatic increase from the current threshold of $100 million. While the SEC hasn’t publicly announced its decision to scrap the overhaul, some within the agency have been notified it’s dead, said the people who asked not to be named in discussing internal communications.