European Hedge Fund Group Expresses Concern

Oct 9 2008 | 8:09am ET

Fresh from announcing 10 new signatories to its voluntary best-practices code for hedge funds, the head of the Hedge Fund Standards Board is adding his voice to the criticism of the ban on short-selling, as well as expressing his fear of rash regulation.

“Some of these more immediate reactions can be counter-productive,” Antonio Borges told Reuters. While the U.S. bar on short-selling certain financial stocks has been lifted, similar restrictions remain in effect in many European jurisdictions where Borges’ members do business. Hedge funds managing about half of the hedge fund assets in Europe are signatories to the HFSB standards.

“There is extraordinary political pressure and when that happens it’s very difficult to know whether the outcome will be the best possible one or not,” Borges said. “The reputation of the industry will drive public opinion and therefore politicians in directions which might be harmful for all of us, not just hedge funds. Banning short selling is bad for the whole market.”

In Depth

Financial Industry Blockcain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...