For all the hoopla over hedge fund registration, more than two-thirds of hedge funds surveyed have done so, according to Horizon Cash Management. In an online survey conducted a month before a federal appeals court struck down the Securities and Exchange Commission’s HF registration rule, 69% say they registered, with three-fourths of the remaining 31% adding that they were planning to do so. (Of course, the responses might be different if the question were posed today.) Horizon also found that 65% of respondents didn’t find the registration process too burdensome. Of the 24% who found the process a pain, personnel and time factors trumped financial considerations as the main concerns. Hedge funds also are up on their best practices, with 85% of them having policies and procedure manuals – especially since 80% of respondents say investors view operational controls as important or very important. In other results, the survey discovered that 40% of managers rely on side letters, while 43% don’t, and rest claim not to know. About two-third of HF managers using side letters say they don’t tell all investors about them.
