Galvin Hits Hedge Funds For 'Disruptive Effect'

Jan 3 2007 | 12:58pm ET

With Eliot Spitzer now safely ensconced in New York’s governor’s mansion, Massachusetts Secretary of State William Galvin laid his claim to succeed the former Empire State attorney general as the “sheriff of Wall Street.” And his target, unsurprisingly, is the hedge fund industry.

According to news reports this week, Galvin’s office has launched a probe into “hedge fund hotels,” specifically UBS’ practice of leasing office space to hedge fund traders to lure their business. UBS said it is cooperating in the investigation, which seeks to determine if hedge funds are paying more in trading fees to compensate UBS for the office space and other services, a practice that might lead to increased management fees.

But Galvin, who has excoriated his state’s public pension funds for investing in hedge funds and called for stricter limits on investors in hedge funds, said his crusade doesn’t stop at the hotel’s front door. “The bigger issue is, what is to be the role of hedge funds in the financial system?” he said in a Boston Globe interview. “Hedge funds are like the jet stream that affects all the other weather, and can have a disruptive effect at a time when we’re saying to most investors… ‘you’re on your own.’”


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.