Hedge fund registrants on decline

Hedge fund advisers opting to register with the SEC increased by only 1.5% this year.
JUL 30, 2007
The number hedge fund advisers opting to register with the Securities and Exchange Commission increased by only 1.5% this year, down from an almost 20% increase in registrations in 2006. The total number of investment advisers registered with the SEC hit 10,446 this year, an increase of 1.5% from last year’s figure of 10,290. The slowdown in registrations was fueled by some 732 hedge fund advisers who withdrew their registrations with the agency between April 2006 and this April. Most of the de-registrations followed a court decision that invalidated an SEC requirement for hedge fund advisers to register with the agency. Still, 1,990 hedge fund advisers have maintained their registration with the SEC. Out of that total, 150 have become registered this year. Overall, SEC-registered investment advisers also reported an all-time high of $37.7 trillion in assets under management, up nearly 20% from the $31.4 million last year. The survey was co-sponsored by the Investment Advisor Association and compliance consulting firm National Regulatory Services.

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