Funds Hub

Money managers under the microscope

Banks’ pain could be hedge funds’ gain

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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.

rtr1oo4sAt 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.

Listen to LV’s Tom Caddick

Tom Caddick, fund of funds manager at LV= Asset Management, talks about his funds’ allocation to equities and his positive outlook on corporate bonds.

Insurance policy

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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.

rtrp8722Outspoken star fund manager Crispin Odey this week revealed he’s now buying UK banks, having made money shorting them last year.

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