Christopher Shays: “I rise in support of the Hedge Fund Study Act and appreciate the work of our colleague, Mike Castle, to craft this…”

“I rise in support of the Hedge Fund Study Act and appreciate the work of our colleague, Mike Castle, to craft this legislation and bring it to the floor. Mr. Speaker, the hedge fund industry plays a critical and special role in our capital markets and is enormously important to helping institutional investors diversify their investment portfolios and meet their future funding needs. While the numbers fluctuate some, there are believed to be close to 8,000 hedge funds that manage approximately $1 trillion in assets. Connecticut's Fourth Congressional District, which I'm grateful to represent, is home to several hundred of the most successful hedge funds. Over the past few years, the industry has received increasing attention from the media, Congress and the Securities and Exchange Commission (SEC). I happen to believe that strong oversight of our financial markets is critical to our Nation's economic well-being. While hedge funds, which have knowledgeable and sophisticated investors, do not require the same level of scrutiny as is paid to the mutual fund industry, it seems to me more transparency and better government and regulator understanding of the industry will ultimately benefit investors and managers alike. In my judgment, this act is a sensible approach to the issues raised by the growth and importance of hedge funds to the capital markets.”