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March 8, 2006
Hedge funds become more mainstream
Hedge funds are becoming increasingly popular, according to a number of recent reports.
The speculative funds, which manage investments on behalf of a select group of wealthy private investors and businesses, are notoriously secretive, but the worldwide hedge fund market has grown rapidly and is now worth around £600 billion.
However, the Telegraph reports that they are becoming more transparent, accessible and "mainstream", with regulatory challenges to the historical secrecy of the funds and their close links with investment banks taking place in the UK, France and Spain.
The UK's financial markets watchdog recently fined hedge fund group GLG £750,000 and one of its employees, Philippe Jabre, the same amount over accusations of market abuse and has pledged to crack down on misbehaviour by fund managers.
The Financial Services Authority (FSA) fine is one of the largest ever handed out to an individual and the investigation into GLG and Mr Jabre, led by FSA head of enforcement Margaret Cole, has taken two years.
A number of hedge fund management groups have announced plans to float on international stock exchanges, or are understood to be considering becoming listed companies, forcing them to become more transparent.
Hedge funds have also been in the public eye in recent weeks following the revelation that David Mills, the international lawyer husband of UK culture secretary Tessa Jowell, remortgaged their home in 2000 and invested £400,000 in hedge fund Centurion.
-BobsGuide.com-
Posted by su at March 8, 2006 4:32 PM