Money managers under the microscope
News and views on the asset management industry from Reuters and elsewhere:
Getting information out of secretive hedge fund firm TCI (The Children’s Investment fund) can be a difficult task — just ask the Treasury Select Committee, whose tough questioning of founder Chris Hohn in January was met with short responses.
However, it appears the activist firm has been on the move, hiring Masroor Siddiqui, head of the European business at Canyon Capital.
It seems the UK Treasury Select Committee’s very public chastisement of the hedge fund industry in January has had some effect.
At the time, MPs zeroed in on the Hedge Fund Standards Board (HFSB) in particular and the relatively small number of funds it had signed up — 33 in December — even though these funds accounted for half of the European industry.
Tuesday’s Treasury Select Committee grilling of the hedge fund industry proved a lively affair (if somewhat hot in a crammed Westminster room), but you have to wonder how well diversified their choice of witnesses is.
As well as Chris Hohn, co-founder of TCI, the Committee picked BlackRock’s head of alternatives Douglas Shaw — a previous employee of TCI.
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.