most of these hedge funds have only a handulf of investors and these investors do their own auditing.
it's like asking the SEC to audit your 'private' business affairs. SEC and even the police can only do so much. investors would need to hire their own auditors and do their own investigations before investing like profesional investors would do.
I would sure hope so.... would help the SEC show some kind of credibility...if they have any left that is....
more hedge funds are blowing up...i.e. the illegally run ones, as the market goes against them. SEC will be restructured. Whole financial industry was very incestual.
Hedge Fund audit rates will probably increase because I suspect the SEC has the same sized staff and there will soon be about 50% less hedge funds. Your chances of getting audited probably depends on your size. If you're running a 10M fund for 20 people, probably not. The higher you go the more likely you'll get a knock on the door.