Hedge fund practitioners have reacted angrily to proposals published by the European Commission today to regulate the alternative investment industry, and in particular to a "ridiculously low" asset threshold that will expose firms responsible for 90% of all hedge fund assets in the region to greater oversight, potentially forcing some to consider leaving.

The EC's draft rules impose regulation and disclosure obligations on managers based in Europe, who manage assets above €100m ($75.5m). Copies of the draft circulating before its release had mentioned an entry point of €250m.