The chief executive of the world’s biggest hedge fund manager yesterday hit back at critics of the industry, claiming investment banks were far more likely to be guilty of sharp practice.
His comments came amid increasing concern from regulators that hedge funds are using the inside knowledge they gain from their involvement in debt markets to make decisions on how to trade companies’ shares – illegal under the City watchdog’s market abuse rules.
Speaking as Man Group unveiled a strong improvement in both profits and fund performance, chief executive Stanley Fink said: “Most of the conflicts of interest start with the investment banks. They are traders in equity and debt markets with advisory businesses on top. That means there is more scope for abuse.
