“MFA supports Secretary Paulson’s call for robust vigilance by all market participants,” said MFA President, John G. Gaine.  “We enthusiastically endorse the Agreement announced today and look forward to continuing our work with the PWG and the U.S. Agencies to ensure viable markets, investor protection and the prevention of systemic risk.”  

            Secretary Paulson, as chairman of the PWG, which is composed of the Treasury Secretary and the chairmen of the Federal Reserve Board, the Securities and Exchange Commission and the Commodity Futures Trading Commission, said the Group has agreed unanimously that market discipline most effectively addresses systemic risk, and that issues of investor protection can be addressed through a combination of market discipline and regulatory policies that limit direct investment to sophisticated investors. 

            “The alternative investment industry is ever vigilant with respect to sound business practices,” said Mr. Gaine.  “MFA’s Sound Practices for Hedge Fund Managers is currently in revision and will be released this year.”  Mr. Gaine added that MFA pledges full cooperation with the ongoing evaluation of the industry and market developments. 
 

            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 1,300 members are affiliated with the majority of the 100 largest hedge funds, which manage a significant portion of the over $1.3 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