Money managers under the microscope
News and views on the hedge fund sector from Reuters and elsewhere:
Rajaratnam wins ruling, wiretap turnover on hold – Reuters Och-Ziff pulls in $650 mln in six weeks - FT U.S. Sen Warner uneasy on proprietary trading ban – Reuters China hedge fund launched – Hedge Funds Review ‘Black box’ groups join hedge fund standards scheme – Reuters U.S. hedge funds move towards united front – Hedge Week
The decline in the hedge fund industry is starting to impact some markets in which these free-wheeling vehicles once played, as Jane Baird’s article “CDS price quirks abound as arbitrage withers” demonstates.
She points out that the $45 trillion credit derivatives market is now full of pricing quirks because many hedge funds, once big arbitrageurs in the sector, no longer play here.