Obama bad news for hedge funds, survey says

Virtually all senior hedge fund managers expect increased regulation for the alternative-asset-management industry under President-elect Barack Obama’s future administration, according to a study released today. An overwhelming majority of hedge fund managers (84%) believed that the new administration would result in their firms’ being more costly to operate because of associated compliance expenses, the survey, from Roseland, N.J.-based Rothstein Kass & Co. PC, revealed. Only 5% said that increased compliance costs resulting from more regulation would lead to fund closures; however, 6% thought fewer hedge fund launches would result. More than three quarters of study participants (77%) believed that the overall impact of Mr. Obama’s presidency would be negative for the hedge fund industry. The study, “A New Regime: The Regulatory Climate for Hedge Funds,” surveyed 313 hedge fund senior partners with assets under management ranging from $100 million to more than $750 million Nov. 10 and 11.