Hedge Funds and the JOBS Act
What Hedge Funds Are Expecting from the JOBS ActHedge funds are largely waiting to get some clarity on the rules governing what they can and cannot say to the public, hoping that the JOBS Act will shed some light on this often shrouded area of law and regulation. There's a great interview in On Wall Street with Mitch Ackles of Hedge Fund PR covering the other concerns and hopes that hedge funds have in regards to the impending law and its impact on the industry.
"Some of the larger managers have been comfortable with it - you see them on CNBC or Bloomberg TV or The Wall Street Journal," Ackles told StreetID. "Those managers tend to stick to the big picture, and this has been a safe haven for managers of all sizes. They can go on TV and be quoted in the press if they talk about their big picture view of a sector - the economy, regulation. They can certainly give those opinions (and be quoted) and not have that be construed as, you know, trying to offer something inappropriate to someone that's unqualified that might read it."
The real problem, however, is that there has not been any clarity regarding the things that hedge fund managers can and cannot do. "So there's a good chunk of people that you will never see get quoted and will never want to talk to [reporters] until the JOBS Act rules [are finalized] and the SEC comes out with specifics that will guide the industry and hopefully provide that clarity that has been missing for so many years," said Ackles.
This is not the only challenge that hedge fund managers have encountered, but things are starting to get easier. "The secondary aspect of the Hedge Fund Association -- which was only established as a result of Dodd-Frank -- is our lobbying," Ackles explained. "I myself am a registered lobbyist and part of a core team of about four or five people at HFA that airdropped ourselves into DC during Dodd-Frank before everything was finalized. We were really speaking up for the industry participants that don't usually have a voice in DC -- the smaller and emerging managers."