Jekyll, Hyde and Timothy Geithner
May 2009, Institutional Investor’s Alpha Magazine

At the same time that U.S. Treasury Secretary Timothy Geithner is seeking assistance from hedge funds in bailing out the banks, he is also proposing ever-stricter regulation of these same entities. As new regulatory proposals move forward, hedge fund managers are left asking questions about what is to come.

"The devil’s in the details, and we don’t have any," notes Monica Arora, a New York–based lawyer who specializes in investment-fund advice at White & Case.

Arora and others say the hedge fund industry is seized with a sense that change is inevitable but that managers are concerned about how much information they will have to cough up. "Part of the fear is that the rule is [going to be] so broad — will they have to divulge trading positions, their entire portfolio, their leverage?" Arora says.