Money managers under the microscope
from Reuters Investigates:
We went behind the scenes of Dubai's debt debacle last November and found a much more sober city-state starting to rebuild itself from the $59 billion hole that was dug by the whizz kids who had powered its transformation. Loans don't come as easy -- particularly the nod and the wink of association with the royal family isn't cutting it like it used to.
Some people see a connection between the crisis and the fact that Dubai has also started to tighten up on its trade with Iran, in line with broader international sanctions, but we're not so sure about that.
What did come across loud and clear in our reporting is that the new-new Dubai is currently being led more by older, senior types who had been thrown off the ladder by the MBAs and the like on their way up. Some of the financial types we spoke to worried about this: we don't need civil engineers, one said, we need financial engineers. It'll be interesting to see how it plays out.
News and views on the fund industry from Reuters and elsewhere:
News and views on the fund sector from Reuters and elsewhere:
Goldman’s “fabulous Fab” Tourre is off - Reuters
Bear Stearns rejected deal with Paulson – Guardian
Hedge fund stories from the past 24 hours from Reuters and elsewhere:
UK must fix hedge fund oversight, official says – Wall Street Journal
Former SEC laywer admits role in $44m hedge fund scam – the Star-Ledger
Crisis leads to hedge fund changes – Hedge Funds Review
Insight director of UK equities Andy Cawker, manager of a long-short Ucits III fund, tells me he has been changing the way his fund hedges its market exposure as market conditions change.
His Absolute Insight UK Equity Market Neutral fund, which uses pairs trades to produce a largely market neutral portfolio, has shifted from hedging mostly against the index two years ago to now hedging predominantly against individual stocks.