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Authors

Ryan Sklar

Keywords

hedge funds

Abstract

This Note examines the conflicts of interest that hedge fund managers face and the negative effects that these conflicts can have on hedge fund investors. Taking a bifurcated approach, this Note analyzes the regulation of hedge funds at both the federal and state level, focusing specifically on the regulation of conflict transactions. With an emphasis on the retailization of the hedge fund industry, this Note demonstrates the inadequacy of the safeguards from such conflicts of interest that the law currently affords investors. Given the public interest in protecting the growing number of “ordinary” investors who indirectly invest in hedge funds, this Note suggests that Congress take action to protect investors from hedge fund managers’ conflicts of interest, either through enhanced disclosure obligations or the imposition of federally mandated fiduciary responsibilities.

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