Activist Hedge Funds Get Less Time to Disclose Big Stakes (2)

Activist hedge funds and other investors will have far less time to disclose when they amass significant stakes in companies under a new rule from the Securities and Exchange Commission.

The SEC will give fund managers just five days, compared with the prior requirement of 10 days, to report they’ve bought up 5% or more of a company’s stock. The regulations are intended to give other investors more transparency, the agency said in a statement Tuesday.

“In our fast-paced markets, it shouldn’t take 10 days for the public to learn about an attempt to change or influence control of a ...