SEC May Require Hedge Funds to Reveal Short Positions

The U.S. Securities and Exchange Commission (SEC) revealed it may require hedge funds to disclose their short-sale positions and plans to subpoena the funds for their communication records. Currently, the SEC makes hedge funds just reveal their long positions.

Hedge funds and investors managing more than $100 million in securities would be "required to promptly begin public reporting of their daily short positions,'' Chairman Christopher Cox said in a statement today. The enforcement division will obtain "disclosure from significant hedge funds'' regarding "past trading positions in specific securities,'' Cox said.

Many funds will resist this because they don't want to reveal their particular strategies.

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