Like it or not, a new sheriff is in town — the town being Washington, the sheriff being the Obama administration — and in all likelihood the federal government this year will begin requiring hedge funds to register, though it’s not clear what that means (see “Here Come the Feds”). The idea has strong support in the Democratic-controlled Congress, and most of the institutional investors surveyed here don’t have a problem with that prospect.
What type of institution do you represent?
Corporate pension fund 27.4%
Public pension fund 34.0
Taft-Hartley pension fund 1.9
Endowment 34.9
Foundation 1.9
What is the size of your fund?
More than $5 billion 13.5%
$2.50 billion to $5 billion 12.5
$1 billion to $2.49 billion 20.2
$500 million to $999 million 10.6
$100 million to $499 million 26.0
Less than $100 million 17.3
Do you currently invest in hedge funds or funds of hedge funds?
Yes 52.9%
No 47.1
If you answered no, would you consider investing in hedge funds?
Yes 16.2%
No 83.8
If you do invest in hedge funds, how big is your allocation?
26 to 50 percent 5.7%
16 to 25 percent 18.9
11 to 15 percent 11.3
6 to 10 percent 34.0
Less than 6 percent 30.2
Should hedge funds be subject to limits on leverage?
Yes 43.6%
No 56.4
If you answered yes, what would you consider an acceptable leverage ratio for a hedge fund?
2-to-1 29.0%
3-to-1 41.9
4-to-1 19.4
5-to-1 6.5
10-to-1 3.2
Should hedge funds be subject to restrictions on short-selling?
Yes 33.3%
No 66.7
If you answered yes, what would you consider acceptable restrictions?
Monthly disclosure of short positions 19.4%
Quarterly disclosure of short positions 27.8
Shorting of only nonfinancial companies 5.6
Reinstatement of the uptick rule 47.2
Do you think hedge funds are to blame for the credit crisis? No 52.5%
Yes, some of the blame 44.6
Yes, most of the blame 3.0
Should hedge funds be required to register?
Yes 82.2%
No 17.8
Are registered hedge fund managers less likely to commit fraud than unregistered managers?
Yes 54.1%
No 45.9
Responses may not total 100 percent because of rounding.
