At the recent Securities and Exchange Commission hedge fund hearings in Washington, the question on everyones mind was whether or not hedge funds would be restricted in regards to tactics they can employ to manage money, Dow Jones reports.
However, there has been an unforeseen turn of events. Two SEC commissioners suggested a potential deregulation of the mutual fund industry, allowing fund managers to use tactics employed by hedge fund managers that they asserted could potentially protect the average investor from the major market decline over the past few years.
While one would think that this sort of idea would be greeted in the mutual fund industry with open arms, the response by many experts in the field was described as muted.
John Collins, a spokesman for the Investment Company Institute told Dow Jones that indeed there did not exist a desire in the fund community for looser rules to allow for hedging, shorting, leveraging or other tactics employed by hedge funds.
Rather, industry experts said that there are a number of other ways to help "ordinary investors in difficult times."