GAO Says Hedge Funds Still Warrant Scrutiny

Law360, New York (February 26, 2008, 12:00 AM EST) -- While hedge funds have improved their disclosure practices in recent years, the lightly regulated investment vehicles remain a potential source of systemic risk and require continued monitoring, the U.S. Government Accountability Office said. The GAO released a long-awaited initial report on hedge fund risk management and transparency on Monday.

The report, which is dated Jan. 24 but was only released publicly this week, found that hedge fund advisers have improved disclosures and transparency about their operations since the near-collapse in 1998 of Long-Term Capital Management, a...
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