SEC staff today, as expected, recommended requiring hedge funds to...

SEC staff today, as expected, recommended requiring hedge funds to register as investment advisers, making them subject to regulatory scrutiny. The commission's comprehensive report on hedge funds also recommended that fund of funds value their hedge fund holdings in a consistent manner, including disclosing the estimated expenses of the underlying fund's interests in their fee tables. The recommendations follow a review of 65 hedge fund advisers with more than $160 billion in total assets; the recommendations will be open to public comment and a review by the five-member commission before they can be finalized.