The US House of Representatives has approved a bill to commission a study on hedge funds that could result in greater disclosure for the industry. The move follows calls from regulators to increase scrutiny in the wake of the $6bn (€4.7bn) of losses suffered by Amaranth Advisors.

The bill, HR6079, was introduced by Congressman Mike Castle and requires regulators to study and make recommendations about hedge funds. Castle said the approval of the bill was the first step to shed more light onto hedge fund investments.