As U.S. agencies step up their legal action against suspected insider trading at SAC Capital, the rest of the hedge fund industry is striving to avoid anything that might attract the attention of regulators, according to The Economist. "And cynics point out that some equity hedge funds have delivered ho-hum profits ever since authorities have clamped down on insider trading," the magazine notes. "In fact, in the calendar years since 2008 they have either lost money or failed to beat the market."

Related Summaries