My opinion is that hedge funds should be regulated more heavily then mutual funds. The reasoning I give is simple. The strategies employed by the hedge funds are far more riskier then a mutual fund. I have not heard of one mutual fund ever "blowing up". In addition, hedge funds seem to attract a bunch of crooks. Sorry if I am being a little bit rough in that assertion, but there have been too many headlines where the hedge fund managers liquidate and head for the hills never to be heard from again. Correct me here if I am wrong on this point. There are some bad mutual funds out there, but I never see headlines all over the news about their blowups or crooks cashing out the fund and running for Sweden.