That power angered German politicians, though, and the fund mangers face investigations.

Conversely, hedge funds face indirect regulation since they do business with regulated entities, banks and brokers.

The most immediate issue the bank and the fund must face, experts said, is who governs them.

What if the fund faced a real catastrophe - huge payments to a class of workers such as those injured by asbestos, for example?

The last time that funds faced such a predicament was in 1999, when the Fed was worried about an overheated economy and raised rates.

The fund faces a big question as the year goes on: when to start buying aggressively again in Japan and Germany.

But Mr. McCall, 47, said his fund did not face a similar fate.

But making their leaders more accessible isn't the only change that such funds may face.

And the funds that invest in these markets face a decline in demand.

Another major fund, with a different strategy, faces a far different year-end.