WASHINGTON, D.C., January 29, 2007 — Managed Funds Association (MFA) said today it applauds Senator Charles E. Schumer (D., N.Y.) and New York City Mayor Michael R. Bloomberg for shedding light on the potential demise of the U.S. as the financial capital of the world.  MFA is the trade association and global voice for the hedge fund industry.

            A report commissioned by Senator Schumer and Mayor Bloomberg, Sustaining New York’s and the US’ Global Financial Services Leadership, raises serious concerns about the ability of the U.S. to retain its leadership position in the capital markets.  The report, prepared by McKinsey & Co., interviewed 50 chief executives in the financial services industry.  It calls for legal changes to reduce litigation and urges consolidation of federal regulatory agencies.
 

            “We agree with Senator Schumer that strong financial markets are crucial to the health of economy,” said MFA President, John G. Gaine.  “MFA shares the concerns outlined in the report.  Vital U.S. markets are critical to the alternative investment industry, and we agree that some prescriptive measures designed to identify access to a highly skilled workforce, a fair and predictable legal environment, and a responsive, market-oriented regulatory framework will be beneficial to the future health and competitiveness of the U.S. financial services industry.”

             The Mayor and Senator called for a coordinated, non-partisan implementation effort to improve America’s performance along several dimensions.  “MFA applauds this call to action by Senator Schumer and Mayor Bloomberg and pledges its support in addressing these challenges.  We look forward to working with them to sustain our leadership position,” said Mr. Gaine.

            MFA, headquartered in Washington, DC, is the primary trade association representing professionals who specialize in alternative investment strategies including hedge funds, funds of funds and managed futures funds. MFA’s over 1,200 members are affiliated with the majority of the 100 largest hedge funds, which manage a significant portion of the over $1.2 trillion invested in hedge funds. Since its inception in 1991, MFA has provided industry leadership in government relations, communications, media relations, and education to MFA members and investors.

 
For further information:                                John G. Gaine, MFA President
                                                                (202) 367-1140