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Hedge Funds: The Legal Risks

Karen Donovan picks up on some interesting rhetoric from Brooklyn's very own US attorney Benton Campbell:

"Hedge fund investors, like investors in publicly traded corporations or mutual funds, are protected by the federal securities laws."

Hedge funds are often considered part of the unregulated financial wild west, and there's no secondary market in hedge-fund investments like there is in stocks or mutual funds: they're not securities, per se. But as Donovan says, Campbell here "has drawn a line in the sand".

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