Wednesday, 29 March 2017
Last updated 55 min ago
Apr 8 2008 | 9:55am ET
Hedge funds, specifically short sellers, are facing a renewed wave of criticism from the media, according to one hedge fund group.
The London-based Alternative investment Management Association, which this week announced plans to work more closely with the U.S.’s largest hedge fund lobby, the Managed Funds Association, says that the hedge fund industry is being criticized for doing what it’s supposed to during extreme market volatility and falling asset prices: delivering absolute returns to their investors. Specifically, AIMA believes that funds employing short-selling strategies are being singled out for “unwarranted criticism” by the media
“Disappointingly, hedge funds are often made the focus of media attention when any suspicions of market irregularities arise,” Florence Lombard, chief executive of AIMA, said. “It is vital that the legitimate shorting of assets should not be confused with alleged market abuse by, as yet, unidentified players in the market…. However, around the world we are seeing hedge funds erroneously being represented in the media as being the focal point for any such investigation. We encourage more balanced reporting going forward.”