This article is about how a significant impact of the JOBS Act is that hedge funds are becoming more open with investors, and that investors are reaping the benefit of access to more information.
It has been two years since the JOBS Act was signed into law, and while the law wasn’t specifically intended to lift the veil that has cloaked the hedge fund industry, according to industry insiders, it is having just that effect.
Bruce Frumerman, CEO of communications marketing firm Frumerman & Nemeth Inc., which counts both small and large hedge funds among its clients, explained that the primary impact of the JOBS Act on hedge fund firms is not the fact that some strategies can be repurposed into 40 Act funds, “instead, it is that discussion of alternative strategies is further entering the dialogue of the marketplace when it comes to portfolio allocation decision making. So, between the post-crash investment environment and the JOBS Act, investors and their advisors now expect more explanation from hedge fund firms about how they invest.”
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