Compliance Issues Impedes Hedge Funds Capital Raising

When the JOBS Act was first promoted to the financial sector, its supporters claimed that it would drastically change the way hedge fund managers conduct business. Their promises were quite persuasive — after months of promotions, many were convinced that the JOBS Act would fix some of the industry’s problems — most notably the way it advertises to investors.

Hedge Funds’ Legalities

Right now, hedge funds cannot technically advertise to anyone. They cannot solicit potential investors — they must find a way to cleverly (but legally) inspire accredited investors to come to them, ask...