It has come to my attention that regulators are considering limiting access to leveraged and inverse funds without meeting certain restrictions. While I understand the concerns that regulators may have in wanting to protect the investing public from themselves, I believe regulating this space would be an unwanted and unnecessary intrusion into peoples private investing decisions. One could argue that these types of funds carry no more risk than investing in many volatile stocks in the Russell or Nasdaq. It is incumbent upon investors to research the risks associated with any security they buy. For me personally, I have been investing in leveraged long and inverse funds for 25 years, and understand the risks and benefits involved. They have been an important part of my investment strategy and I would not appreciate a governmental agency regulating my ability to invest in these vehicles.
Neal Elasky Comment On Regulatory Notice 22-08
It has come to my attention that regulators are considering limiting access to leveraged and inverse funds without meeting certain restrictions. While I understand the concerns that regulators may have in wanting to protect the investing public from themselves, I believe regulating this space would be an unwanted and unnecessary intrusion into peoples private investing decisions. One could argue that these types of funds carry no more risk than investing in many volatile stocks in the Russell or Nasdaq. It is incumbent upon investors to research the risks associated with any security they buy. For me personally, I have been investing in leveraged long and inverse funds for 25 years, and understand the risks and benefits involved. They have been an important part of my investment strategy and I would not appreciate a governmental agency regulating my ability to invest in these vehicles.