Abstract
A comparative approach of law and economics shows hedge funds as collective investment vehicles designed to contain the exposure to regulatory and supervisory constraints and obligations on professional asset management services. Institutional differences among hedge funds around the world arise from the need to adopt different organizational and operational solutions to minimize the implications of regulation and supervision. The propensity of hedge funds to outsource most of their functions that are not related to portfolio management decisions follows from the need to contain the cost of transacting with market counterparties and investors in an opaque environment. The role and the function of the providers of these services depend on the nature of hedge fund whose activity is being supported.