Connecticut Attorney General's Office

Press Release

Attorney General's Statement On Federal Guidelines For Hedge Funds

February 22, 2007

"These vague recommendations lack substance and specifics, making them unenforceable. In a perfect world, everyone would already follow these guidelines - but in the real world we need real protections.

"Opaque is the operative word for these investment pools - especially many of the 9,000 plus hedge funds - and these guidelines will do virtually nothing to make them more transparent. Federal action would be preferable, but federal inaction and inertia will invite - indeed, fuel - state initiatives. Our own state legislature is considering measures to mandate disclosure so that investors can make more informed decisions. Raising the net worth requirements, as proposed by the SEC, is among the kind of significant specific steps needed, unlike these guidelines."