WEST PALM BEACH, FL (www.hedgeco.net) – Hedge fund managers told Reuters news that hedge funds are not a threat to the final markets. However they believe that hedge fund aggressive trading actioncould sometimes lead to market abuses, but hedge funds themselves generally play a positive role in the global financial markets. Such disclosures were made against the backdrop of recent proposalsby German government leaders for hedge fund regulations, in light of their activities in Germany. The German Chancellor, Gerhard Schroeder recently called for new proposals for the internationalregulations of hedge funds. But such proposals may receive a lukewarm reception at the upcoming G 8 meeting in Ireland in July.

Both the United States and Britain have not endorsed such proposals. The United States Secretary of the treasury recently said over regulating hedge funds is not a good idea. “There are a lot of aggressive, bright people out there,” said Charles Beazley, head of global institutional and alternative investments at Gartmore Investment Management. He added, “If you don’t have integrity, then the aggression will kill you”. One manager said, “There are people sailing too close to the wind, but that’s not illegal. I don’t know how prevalent market abuse is, but the most recent (hedge fund) failures are usually to do with fraud, theft or false accounting. Stuart Bohart, managing director and head of international prime services at Morgan Stanley said, “Hedge funds direct approach is what investors wanted. It is unlikely that any serious action towards the global regulation of hedge funds.”

Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net

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