The hedge fund industry received temporary relief as the SEC postponed compliance deadlines for two significant reporting requirements, Form SHO and Form PF.

Kelly Koscuiszka, co-chair of Schulte’s Investment Management Regulatory & Compliance Group, spoke with Hedge Fund Alert on the welcomed delay, stating, “We’ll certainly take the reprieve on Form PF and Form SHO. In particular with Form SHO, it was down to the wire. The additional time hopefully will pave the way for dialogue between the [SEC] staff and the industry to address some tricky interpretive issues.” 

The SEC extended the deadline for monthly short position disclosures under Form SHO to February 17, 2026, giving fund managers additional time to adapt. Similarly, the SEC and CFTC pushed back the Form PF compliance deadline to June 12, 2024, following industry concerns over technical challenges.

In an article for the New York Law Journal titled, “New York State Authorizes Stand-Alone Business Interruption Insurance Policies,” Schulte Roth & Zabel partner Ted Keyes and associate Julia Cummings discuss amendments to the New York State insurance law that authorize, for the first time, stand-alone business interruption insurance policies.

Notably, these policies would respond to claims for business interruption loss even in the absence of direct physical loss or damage to property. The authorization of this new insurance product is a direct response to the effects of the COVID-19 pandemic, during which time government orders requiring the shutdown of non-essential businesses forced countless businesses to close their doors. Many of these businesses sought to recover losses related to the shutdowns under their commercial property insurance policies, only to have their insurance claims denied on the grounds that direct physical loss or damage to insured property is a condition precedent to business interruption coverage under such policies.

Peter Greene, co-head of Schulte’s Investment Management Group, accurately predicted a 10% rise in hedge fund industry assets for 2024, winning Hedge Fund Alert‘s annual forecast contest. The industry grew by 9.5%, from $3.75 trillion to $4.1 trillion, according to With Intelligence.

Peter attributed the growth to an improving fundraising climate, saying, “I was cautiously optimistic that the fundraising environment for emerging managers launching first products and existing managers launching new products would thaw.” Reflecting on the past year, he noted, “That environment did indeed thaw.”

The industry had previously faced challenges, with assets declining in 2022 and seeing only modest gains in 2023. Looking ahead to 2025, survey respondents predict an 8% increase in assets, while Peter remains more bullish, forecasting a 12.5% rise.