Attacking sources of hidden and systemic market risk will continue to be headline material for legislators and regulators in 2009. Notwithstanding the disastrous performance of the most highly regulated market participants, hedge funds continue to be targeted as culpable actors contributing to the dramatic developments of 2008. Most media references to hedge funds describe them as “secretive” and “unregulated,” or perhaps “lightly regulated.” It is generally also implied that all professionals in the hedge fund sector are magnificently wealthy. It is relatively easy to add the charges “secretive,” “unregulated” and “rich” together and produce a publicly acceptable scapegoat for current market woes. In fact, the pace of attack has so much momentum, this article cannot hope to address all the recent reform and obloquy heaped on the hedge fund industry of late.

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