He also characterized hedge funds as "generally risky ventures that simply don't make sense for most retail investors."
"The Commission stated, when we adopted the hedge fund rule in 2004, that its then current program of hedge fund regulation was inadequate," Cox continued. "With the rejection of the hedge fund rule by the Court of Appeals, I believe that is once again the case."
The committee is holding hearings trying to uncover whether executives at hedge fund Pequot Capital Management engaged in insider trading. One of the people it plans to call in to testify is