In America, almost all hedge funds are private equity funds. Because of the private nature of hedge funds, it circumvents the strict requirements of American law on information disclosure of public offering funds. Therefore, in terms of supervision, according to the provisions of the US Securities Law (1933) and 144A, it is not as strict as Public Offering of Fund. American securities law stipulates that: in the name of an individual, the individual's income in the last two years is at least $200,000; If you participate by surname, your husband and wife have earned at least $300,000 in the last two years; In the name of the organization, the net assets are at least $6,543,800+0,000. 1996 made a new regulation: the number of participants was expanded from 100 to 500. The condition of participants is that individuals must own investment securities worth more than $5 million. Generally, there is no such restriction with funds.

● Hedge funds can be unregulated. The Securities Law of the United States 1933, the Securities Exchange Law of 1934 and the Investment Company Law of 1940 all stipulate that institutions with less than 100 investors need not register with the financial authorities such as the Securities and Exchange Commission of the United States when they are established, and can be exempted from regulation. Because investors are mainly a few very sophisticated and wealthy individuals, they have strong self-protection ability. In contrast, the supervision of mutual funds is relatively strict, mainly because investors are the general public and many people lack the necessary understanding of the market. In order to avoid public risks, protect the weak and ensure social security, strict supervision is implemented.

Hedge funds are generally initiated through private placement, and the securities law stipulates that no media should be used to advertise when attracting customers. Investors mainly participate in four ways: according to the so-called "reliable investment news" obtained by the upper level; Know hedge fund managers directly; Transfer through other funds; Investment bank. Specially introduce securities intermediary companies or investment consulting companies. The general * * * funds mostly entertain customers through public offering and public advertising.

In short, hedge funds don't need supervision!