More regulation for hedge funds

The credit crisis left many hedge fund investors with a sense that there's a black box at every fund that governs valuations. As long as those valuations reflect soaring gains, that's not a problem. But when things tank, questions arise. Investment Dealers' Digest suggests that there may be more calls for heightened transparency soon. Of course, any new rules in that regard may well have a host of unintended consequences, along the lines of Sarbanes Oxley. So the answer would seem to be voluntary industry action. Most funds would agree in principle. But the specifics would be much more difficult to agree on. There will always be customers who want more. Especially when returns sour.  

For more:
- here's the Investment Dealers' Digest article  

Related article:
- The future of the hedge fund business