Hedge funds, which seemed to escape heavy-handed regulation in President Barack Obama’s proposed overhaul last week, may actually be getting more than they bargained for.

Mary Schapiro, chairman of the Securities and Exchange Commission, said the regulator may force hedge funds to disclose stakes in companies held through over-the-counter derivatives. Such a move could make it difficult for funds to quietly acquire large stakes through equity swaps.

“Similar products and activities should be subject to similar regulations and oversight,” Schapiro told a Senate Banking subcommittee today. She added that the “interchangeability of securities and securities-related” derivatives indicates that they should be similarly regulated.

http://www.finalternatives.com/node/8304