The Hedge Fund Industry is lobbying the SEC to be included in a proposal that would allow mutual funds to invest more in exchange traded funds (ETFs) then what is currently allowed. Under the Investment Company Act of 1940, mutual funds and hedge funds are limited to ownership stakes of no more than 3 percent of the outstanding voting shares of ETFs. The new SEC proposal would raise the current ownership allowed, but only for mutual funds. The Managed Funds Association (MFA) contends that by allowing hedge funds a greater ownership of ETFs would enhance the ability of private funds to meet their investment objectives, enhance market transparency, and increase liquidity and trading of ETFs. Jennifer Han, legal counsel for the MFA, advocated further for inclusion of hedge funds in the SEC proposal, stating, “there’s no policy rationale for distinguishing hedge funds from other institutional investors. Hedge funds use ETFs like other institutional traders. They use it for hedging purposes and risk management, and also to equitize cash balances.”
ILG Ranked #2 Globally for 2021-22 Hedge Fund Launches
ILG is pleased to be ranked the #2 law firm globally for hedge fund launches serviced over 2021 and H1 2022, cementing our place among the top global hedge fund law practices.
2021 Year In Review — Financial Markets and Hedge Funds — And a Look Ahead at 2022
2021 Year In Review — Financial Markets and Hedge Funds — And a Look Ahead at 2022 Closing the books on 2021, investors are reconsidering their investment portfolios in light…
Investment Law Group Announces Addition of Bill Winter to Firm’s Corporate Practice Group
ILG is pleased to announce the addition of Bill Winter to expand the firm’s growing Corporate Practice Group.