West Palm Beach (HedgeCo.Net)- The Congressional Research Service recently published a report to Congress on pension fund investments in hedge funds.

The report indicates that pension funds that invest in hedge funds have increased to 24% in 2006, up from 19% in 2004. Total corporate pension fund assets allocated to hedge funds has grown from 1.3% in 2003, to approximately 2.1% in 2006.

The report also says that hedge funds have experienced a growth of 3,000% over the last 16 years.

It also describes the lack of SEC oversight, certain high-profile fund blowups, and the possible risk to the Pension Benefit Guaranty Corporation associated with investments by pension funds in hedge funds.

"In our market based economy, market-discipline of risk taking is the rule and government regulation is the exception." Says The Presidents Working Group on Financial Markets.