Money managers under the microscope
The seemingly endless drama of financial regulation has frequently fixed the spotlight on hedge funds, but there could yet be a twist in the tale.
At a breakfast briefing this morning at the City of London’s plush Capital Club, law firm Katten Muchin Rosenman Cornish suggested the beleaguered hedge fund industry could even benefit from tighter rules.
Martin Cornish pointed out that, under whatever new rules finally come in, banks and insurance companies are unlikely to be able to conduct the highly leveraged or high risk trades they had previously carried out.
“Ironically, maybe we’ll see more fund managers setting up (on their own),” he said.
Shorting UK banks, it seems, is so last year.
Having profited from the implosion of the sector in 2008, many funds believe prices have fallen far enough, and in some cases are actually looking good value.
Outspoken star fund manager Crispin Odey this week revealed he’s now buying UK banks, having made money shorting them last year.