Freeman Report Points to Future Institutionalizati

NEW YORK (HedgeWorld.com)–As public investment companies continue to expand into alternative asset management, the popularity of hedge funds increases as does the potential for increased regulatory oversight, researchers at Freeman & Co. concluded in the firm’s fourth quarter report.

Freeman’s research tracks, on a quarterly basis, the growth of the industry, and officials there believe that hedge funds and hedge fund of funds will be under a higher level of scrutiny due to the demand for the strategies.

Public companies that are starting their own hedge funds likely will raise the standard for what is expected in the industry, according to Freeman. The only downside is that smaller hedge fund managers might be pushed out because of the increased cost of legal and compliance thanks to increased regulatory oversight.