WEST PALM BEACH, FL (www.hedgeco.net) – The Chairman of the Securities and Exchange Commission, William Donaldson has warned that pressures on hedge fund managers to justify the high hedge fund feesby achieving higher returns could lead to problems in the near future.
Donaldson said, �Every week seems to bring another article in the press about the crowding of hedge funds into similar investment strategies and the difficulty that this implies for hedge fund managers eager to post market-beating returns.� Mr. Donaldson made his remarks at the Foundation Financial Officers in Washington.
Lately hedge fund performance and returns have been the focus of the Chairman�s speeches. He also made similar statements in Philadelphia, amid concerns of the market over the downgrading of General Motors Corp. and Ford Motor�s bonds, which were recently downgraded to �junk bond status.�
The SEC Chairman said, “If history is any guide, it is just this sort of pressure that can lead otherwise well-intentioned professionals to pursue practices that can ultimately result in disaster for the investors that they serve.”
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Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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