The Securities and Exchange Commission has launched a broad examination of alternative mutual funds, kicking off regulatory scrutiny of one of the hottest and most controversial investment products to be offered to small investors, the Wall Street Journal reported today. The so-called funds "sweep" includes examinations of large investment firms such as BlackRock Inc. and AQR Capital Management LLC but also smaller firms that previously didn't offer mutual funds. The agency's goal appears to be to gather information about the industry, not necessarily to deliver enforcement actions. Still, advisers to fund companies fear the examination could put a chill on the industry's aggressive growth plans for these popular new products.
