WEST PALM BEACH, FL (www.hedgeco.net) – Hedge funds have been traditionally reserved for the affluent investors, but new reports say some hedge funds may soon go public by offering their shares toanyone who is interested in getting a piece of the pie. Such strategy is aimed at generating additional capital to be used in pursuing other investments.
According to Robert Schulman, co-chief executive at money manager Tremont Capital Management, �Going public hasn’t been a very popular strategy in the past, but it also isn’t unheard of and it may be gaining momentum for several reasons.� MAN group Plc, is among the few number of hedge fund managers to offer its shares to the public.
Some people believe that the Chicago based Grosvenor Capital Management, may be planning to offer its shares to the public as well. The managers oversee over $13 billion of investor assets. Many institutional investors such as pension and endowments have invested their assets with Grosvenor. The firm declined to comment on that report. Grosvenor may not be the only hedge fund manager making such plans according to industry analysts. Justin Dew, a hedge fund analyst at Standard & Poor’s said, �Going public could be very lucrative and a great way for companies to get more access to capital.� Dew added, “This would be a way to gain access to the profitability of a hedge fund without actually buying into one.
Going public however has its disadvantages, because it brings along regulatory scrutiny. However in the wake of the new hedge fund laws, SEC oversight does seem inevitable at some point or another. It is unclear if other hedge funds may continue to go public in the coming years, but generally once a new trend emerges it is likely that other managers may duplicate such example.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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