WEST PALM BEACH, FL (HEDGECO.NET) – London based hedge fund manager Gartmore said hedge funds should accept the upcoming proposed regulation. They feel this because hedge funds are becoming morecommonplace, and also maturing. Such regulatory oversight according to Gartmore, should satisfy the investment requirements of pension fund managers that continue to pour assets into hedge fundportfolios.
Charles Beazley, head of institutional and alternative investments at Gartmore, told Reuters that hedge funds have led the way with absolute return strategies, offering pension funds an alternative to relative returns based on tracking benchmarks. According to Beazley, pension funds have flocked to hedge funds based on their absolute return offer, helping to push the global assets of hedge funds to about $1 trillion.
Beazley commented, “Absolute return investing is another way of saying, ‘It’s not okay to lose money, more and more people are drawn to the idea, but individual hedge funds need regulation because even if the idea is good, investment success is not the same as commercial success and that’s the key, going forward.” Beazley made his remarks at the Blue Ribbon Hedge Fund Symposium.
While hedge funds in the United States are registering with the US Securities and Exchange Commission, following the passage of the Hedge fund laws few months ago, it is unclear if European hedge fund investors may be subjected to similar regulatory oversight. Beazley also noted. “We have to be open and honest about our business and our shortcomings, we need to understand that more and more it’s not our money. We need to have a responsible ethos and philosophy and a process that people can understand,� he said.
Some hedge fund market analysts think it is only a matter of time before Europe implements similar oversight for its growing hedge fund industry, in light of the increasing interest in hedge funds by the European pension fund managers.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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