Following up on this post, according to an article in todayâ€™s FT, 1,000 hedge fund advisers had already registered with the SEC prior to adoption of the registration requirement, so it appears that about 1,800 hedge fund advisers will be registered. Again, there are an estimated 8,000 hedge funds. Granted some advisers likely manage more than one fund, it looks like somewhere near a quarter of hedge fund advisers will be registered.
On another note, todayâ€™s FT also reports that registered hedge fund advisers deemed high risk by the SEC will be inspected every three years. Other hedge fund advisers will be selected randomly for inspection. The article does not specify the criteria for an adviser being categorized as high risk. But given the numbers, isn’t there a high risk that the truly high risk advisers will not be registered and therefore not subject to inspection?