Rep. Richard H. Baker, R-La., introduced the Hedge Fund Disclosure Act...

Rep. Richard H. Baker, R-La., introduced the Hedge Fund Disclosure Act yesterday in the House Banking Subcommittee. The act mandates that unregulated hedge funds — defined as any pooled investment vehicle with capital of $3 billion or more that is privately organized, administered by investment managers, not widely available to the public and not registered under the Investment Act of 1940 — must submit a report to the Federal Reserve Board within 15 days of the end of each quarter. The report must list the fund’s total assets, the total derivatives position and the balance sheet leverage ratio of assets to liabilities for the end of the reporting quarter; and offer ``meaningful and comprehensive’’ report of the firm’s market risks, including a value-at-risk test or stress tests for the end of the reporting quarter; and offer ``other information’’ the Fed requires after consulting with the SEC, the CFTC, the Treasury secretary and federal banking agencies. The law requires the Fed to make copies of the disclosures available to the SEC, the CFTC, the Treasury and the public, but says the Fed may protect ``proprietary information’’ from being made public, such as information on investment strategies and positions.