Federal Reserve Chairman Ben Bernanke warned this week that placing more regulation on hedge funds could make financial markets less stable. He also said he believes that hedge fund trading partners manage their risks well, Reuters reports.

"Authorities' primary task is to guard against return of the weak market discipline that left major market participants overly vulnerable to market shocks," Bernanke said.

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.