Funds Hub

Money managers under the microscope

New blow for hedge fund lobby

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The battle over how hedge funds will be regulated by the EU has been going on for some time now and has taken many twists and turns along the way.

rtx5ivzHowever, after apparently making progress with the latest compromise text from Sweden, opponents of tough regulation may have hit a setback.

According to a report by Jean-Paul Gauzes, obtained by Reuters, the Frenchman has recommended tighter rules than many had expected.

These include funds having to tell regulators how much they intend to borrow, the creation of a pan-European watchdog that could intervene if a fund is seen to be taking too much risk, and the same pay curbs as for bankers.

In the thick of it

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Hedge funds must be getting used to being at the centre of negative attention.

rtr8hshHowever, even after 18 months which have seen them blamed for the credit crisis, infuriate investors by blocking redemptions and subject to a host of new rules designed to put a leash on the sector, it seems there are still ways to ruffle the feathers anew.

Chris Addison, stand-up comic and Malcolm Tucker’s “unbaked gingerbread man” at the heart of BBC satirical comedy The Thick of It, managed to leave mouths agape with a joke at a recent corprate gig for hedge fund traders, according to an interview in today’s Guardian.

Fight Fight Fight!

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bar_fight.gifFor those tiring of the squabbling over the European Union’s AIFM directive, at least the rhetoric continues to impress.

The EU threat has certainly made pension funds more bullish, and this week they were threatening to gang up on “arrogant” hedgies to force through far stricter terms on performance fees. “Institutional investors are totally disillusioned with funds not delivering what was on the tin,” Philip Read, chairman of the British Coal scheme, told chastened managers at the Hedge 2009 conference.

Do you hold any stock from the Galleon portfolio?

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New YorkRaj Rajaratnam, billionaire founder of the Galleon Group hedge fund, was arrested Friday on charges of leading an insider trading scheme that generated more than $20 million in profit over the past few years.

Below are the top stocks of Galleon Management LP’s $1.95 billion of stock holdings as of June 30, based on Securities and Exchange Commission filings.
 
NAME                       STOCK SYMBOL       MARKET VALUE    SHARES HELD
 
EBay Inc                   <EBAY.O>               $116.1 mln         4.74 mln
Apple Inc                  <APPL.O>              $78.3 mln           416,491
Google Inc                 <GOOG.O>           $77.4 mln           140,800
OSI Pharmaceuticals        <OSIP.O>        $52.6 mln           1.65 mln
Bank of America Corp       <BAC.N>       $42.9 mln           2.48 mln
JPMorgan Chase & Co        <JPM.N>        $41.9 mln           909,845
Cisco Systems Inc          <CSCO.O>        $38.6 mln          1.61 mln
SPDR Trust                 <SPY.P>                $34.4 mln          316,000
Dell Inc                   <DELL.O>                $31.8 mln          2.08 mln
EMC Corp                   <EMC.N>              $29.6 mln            1.65 mln

from Summit Notebook:

Tax evaders on the run

  By Neil Chatterjee
    The U.S. has promised it will hunt down tax evaders.
    And it seems tax evaders are on the run.
    DBS bank, based in the growing offshore financial centre of
Singapore, told Reuters it had been approached by U.S. citizens
asking for its private banking services. But when told they would
have to sign U.S. tax declaration forms, the potential clients
disappeared.  
    Swiss banks also approached DBS on the hope they could
offload troublesome U.S. clients to a location that so far has
not been reached by the strong arms of Washington or Brussels.
    DBS said no thanks. In fact many private banks and boutique
advisors now seem to be avoiding U.S. clients.
    Will this spread to other nationalities, as governments
invest in tax spies and tax havens invest in white paint?
    Is this the end of offshore private private banking?

Dale Gabbert: Swedish massage hits the spot

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Guest blogger Dale Gabbert heads the funds group in the London office of law firm Reed Smith. His practice covers hedge funds, private equity and property funds and he is the author of Hedge Funds, a legal guide published by Butterworths Lexis Nexis.

The views expressed here are entirely the author’s own and do not constitute Reuters’ point of view.

Tilting at windmills

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Hedge fund rules on thin ice?The growing discomfort among pension funds over EU plans to regulate the hedge fund industry has prompted another public pronouncement, this time from Dutch schemes with assets of about 450 billion euros, including APG and PGGM.

We’ve noted the potential pivotal role the pension industry could play before, but as yet there hasn’t been an appreciable softening in the tone adopted by the hardliners. Their standard bearer Poul Nyrup Rasmussen called London Mayor Boris Johnson “out of touch with reality” after the much-lobbied blonde tried to strike a blow for the alternatives industry on a vist to Brussels this week.

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