Should Hedge Funds Be Institutionalized?

Abstract

A current issue of debate in the financial markets is whether hedge funds should be institutionalized. Although many in the financial industry discuss it, no one has really defined what “institutionalization” means. The author defines what the term means for the hedge fund industry, and reviews several reasons why financial society should wish to impose such normative behavior on hedge funds. What are some of the consequences of institutionalization for the industry?