AIMA: Hedge Funds Scapegoats For Market ‘Irregularities’

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.”


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note