Money managers under the microscope
Asia comes out on top in hedge fund performance study – FinAlternatives
Regulators are going after the wrong target by trying to impose stricter rules on hedge funds, according to Nassim Nicholas Taleb, high-profile author of credit crisis hit The Black Swan.
Taking a decidedly negative view of banks, Taleb told the Hedge 2009 conference in London today that a bank is essentially “a utility with a compensation scheme”, which the public has to bail out if it fails.
Tuesday’s grilling of UK hedge fund executives is likely to create plenty of noise but produce little in the way of new rules.
While media-shy TCI founder Chris Hohn and others will face tough questions from the Treasury Select Committee on financial stability, short-selling and other issues, it nevertheless seems that the pro-legislation lobby’s position may be weaker than it has been in recent years.
Victor Haghani, a co-founder of LTCM later involved in its liquidation and now a private investor, was opining at a LSE conference on Monday that simply cutting back funds’ borrowing after the carnage of last year may not be a strong enough lesson for the industry to learn.