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Why are hedge funds limited to no more than 100 investors?

April 26, 2017funds hedge investors limited

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Why are hedge funds limited to no more than 100 investors?

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The so called 3(c)(1) Hedge Fund refers to a provision of the Investment Company Act that exempts hedge funds from certain registration and clients’ requirements of the Investment Company Act of 1940 as long as there are less than 100 investors.