With U.S. midterm elections approaching fast, in a year where experts predict shakeups in the House and Senate, politicians across the nation are working on polishing their rhetoric and preparing the platforms that reflect the issues that concern voters most: healthcare, homeland security and...hedge fund regulation?

If anyone needs an image consultant this campaign season, it might be hedge funds. The $1.2 trillion industry-triple the size it was a decade ago-successfully resisted regulators when the U.S. Appeals Court called the Securities and Exchange Commission's registration rule "arbitrary" and deemed it invalid. But instead of enjoying a jolt of renewed public faith, hedge funds are facing claims about the dangers of "retailization," particularly in light of recent interest from pension funds, and an onslaught of suggestions about how to tighten control.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.