As hedge funds continue to reap assets--and gain influence as investors--European regulators are considering imposing new rules on them, The Wall Street Journal reports.

Corporate executives have been rankled in recent months by how hedge funds invested in their firms have thrown their weight around on proxy issues, even ousting the chairman and CEO of the German Bourse late last year. In many cases, the hedge funds' stakes have even been small. European regulators are also concerned that many hedge funds are pursuing unsophisticated investors.

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