Prerequisite: One of the following courses is required as a prerequisite: Bankruptcy, Corporate Finance, Corporations, Securities Regulation, or Taxation
Exam type: Last Class Takehome
Grading will be based 50% on three comment papers and 50% upon a research paper.
This class will introduce hedge funds from the practitioner's perspective, and discuss the foundational issues of corporate and securities law that they raise. The class will begin by examining the internal structure, main regulation, and main strategies of hedge funds, and the main regulatory issues that they face. Through reading materials, course discussions, and guest lectures, students will gain insight into the perspective of fund managers, advisors to these managers and their funds, investors in such funds, those who transact with such funds, and those who regulate the fund industry. One theme that will emerge is that hedge fund strategies are at the center of many of the most pressing current issues in financial law. As the proverbial "smart money" in the market, hedge funds undergird market efficiency, but also continually attempt to exploit loopholes in the current regulatory and tax regime. They thereby expose the fault lines of the current regulatory and tax structure, which the course will reexamine.