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From Kirsten Bischoff, Opalesque New York:

The hedge fund industry, which enjoyed many years of flying below the radar has had little choice but to accept the fact that strong performance through the financial crisis, coupled with a rapidly growing asset base has ushered it directly into the crosshairs of the regulatory agencies. For an industry with a corporate culture of secrecy, increased government attention will likely turn up more cases of illegal activity than most would imagine. And, even in the cases where the activity is limited to a single person - the damage done to the firm and the investors (especially fund of funds) reputations is typically irreversible.

"Five or six years ago everyone thought it was a little bit "big brother" but now it makes sense. Because it isn't always the person at the top of the firm who is doing something wrong, in just as many cases it can be the lower level employees," says Ken Springer, President of Corporate Resolutions Inc, (CRI). Springer is referring to the Whistleblower Hotlines that his firm runs for its clients, a service that has picked up enormously within the private equity space, and that CRI is now marketing to hedge funds.

Little actions are what shape corporate culture While some of the most successful hedge funds may give the appearance of having relaxed corporate cultures, in reality they typically push their employees......................

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