British Hedge Funds Plan Lawsuit Over Short-Selling Bar

Sep 22 2008 | 9:55am ET

From New York to London to Sydney, Australia, hedge funds are unhappy with new short-selling restrictions. But one group of hedge fund managers doesn’t plan to take the new measures lying down.

A group of some of the world’s biggest hedge funds may sue Britain’s Financial Services Authority, which on Thursday became the first regulator to bar short-selling of some securities, in an effort to recoup millions of pounds in losses, The Telegraph reports. The unidentified market players are accusing the FSA of “wide-spread capital destruction” in pursuance of a cheap political stunt.

According to the Telegraph, some 35% of European hedge funds are being forced to scramble to survive in the wake of the FSA’s new short-selling restrictions. The British regulator’s move was quickly followed by similar moves in the United States and Australia.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note