Economic Review

Volume 91, Number 4 Fourth Quarter 2006 FEATURES Preface—Hedge Funds: Creators of Risk? Hedge Funds: An Industry in Its Adolescence Hedge Funds and Investor Protection Regulation Do Hedge Funds Increase Systemic Risk? Corporate Governance and Hedge Fund Management Staff

First Vice President and Acting President
Patrick K. Barron

Executive Vice President and Director of Research
Robert A. Eisenbeis

Research Department
Thomas J. Cunningham, Vice President and Associate Director of Research

Gerald P. Dwyer Jr., Vice President, Financial

John C. Robertson, Vice President, Regional

Ellis W. Tallman, Vice President, Macropolicy

Public Affairs
Bobbie H. McCrackin, Vice President

Lynn H. Foley, Editor

Tom Heintjes, Managing Editor

Jill Dible and Peter Hamilton, Designers

Alison Bounds, Marketing and Circulation

Charlotte Wessels, Administrative Assistance

The Economic Review of the Federal Reserve Bank of Atlanta, published quarterly, presents analysis of economic and financial topics relevant to Federal Reserve policy. In a format accessible to the nonspecialist, the publication reflects the work of the Research Department. It is edited, designed, produced, and distributed through the Public Affairs Department.

Views expressed in the Economic Review are not necessarily those of the Federal Reserve Bank of Atlanta or the Federal Reserve System.

Material may be reprinted or abstracted if the Economic Review and author are credited.

For further information, contact the Public Affairs Department, Federal Reserve Bank of Atlanta, 1000 Peachtree Street, N.E., Atlanta, Georgia 30309-4470 (404-498-8020).

ISSN 0732-1813