Regulators captured

How do hedge funds affect the financial system? Well, according to the European Commission’s expert group report on the topic, they add diversification, increase returns, reduce volatility and helpful for capital allocation. There are myths out there about risks to financial stability or corporate governance, but don’t believe them. The report doesn’t mention the high overhead - about 7% of assets under management annually. But it does recommend that the EU institute a light regulatory regime, i...