Abstract
This Note argues that the current judicial and regulatory stances on hedge funds fail to appreciate and account for the tremendous dangers that hedge funds pose not only to the security of our financial markets but also to the individual investors that securities regulations are designed to protect. To appreciate fully these failures, it is necessary to understand better the history of hedge funds and their recent explosion in popularity and in market power. To aid in this understanding, Part II of this Note discusses the four principal acts that regulate the securities markets and how hedge funds exist and function outside those regulations. Part III analyzes the Goldstein decision and explains the administrative law and normative failures of the court’s analysis. In Part IV, this Note discusses the unsatisfactory reactions to Goldstein and offers a few modest proposals to address the dangers that hedge funds pose. Part V concludes.
Recommended Citation
Dustin G. Hall,
The Elephant in the Room: Dangers of Hedge Funds in our Financial Markets,
60 Fla. L. Rev.
183
(2008).
Available at: https://scholarship.law.ufl.edu/flr/vol60/iss1/4