The Securities and Exchange Commission announced yesterday that it will hold roundtable discussions on hedge funds May 14 and 15 at its headquarters.
"We need more information, more data, more discussion and more understanding of the techniques" hedge funds use, particularly shorting the market, SEC Chairman William Donaldson said Monday in a speech to the National Association for Business Economics.
One of the things the SEC is considering is regulating the hedge fund industry. Right now, the commission can only take action against individual managers or funds, and recently that has been on the rise. Last year, the SEC had 12 civil cases against hedge fund managers, up from five in 2001.
The roundtable will also look into the structure of hedge funds and their marketing.