{"id":4374,"date":"2006-05-04T00:00:00","date_gmt":"2006-05-04T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedge-funds-work-to-build-k-st-clout","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/05\/2006\/hedge-funds-work-to-build-k-st-clout.html","title":{"rendered":"Hedge funds work to build K St. clout"},"content":{"rendered":"<p>  <span class=\"body\">Like many growth industries that go a-courting in Congress, hedge funds have approached legislative and regulatory hurdles with lobbyists retained and pocketbooks open.<\/span><\/p>\n<p>  <span class=\"body\">As hedge funds continue to attract a broader class of investors, however, they are discovering that educating lawmakers \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009d overcoming one Securities and Exchange Commission (SEC)  member\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s recent admission that \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cthere is no clear definition of what a hedge fund is\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009d can be even harder than playing the markets.<\/span><\/p>\n<p>  <span class=\"body\">Most hedge funds begin as a pool of rich investors who use their combined wealth to play off falling stocks and securities with \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cshort sells\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d and other risky trading moves. But  one company, Cerberus Capital Management, is more than just a hedge fund.<\/span><\/p>\n<p>  <span class=\"body\">Cerberus controls the Alamo and National car-rental chains and Albertson\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s supermarkets and recently led a group that purchased GMAC, the profitable loan-financing arm of General  Motors. When WorldCom went bust in 2003, Cerberus owned so much of its debt that one of the fund\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s notoriously private executives testified before the Senate Judiciary Committee.<\/span><\/p>\n<p>  <span class=\"body\">In late 2003, when the SEC began moving toward requiring all hedge-fund advisers to register with the agency, Cerberus and other previously unregulated hedges began fearing  harsher new rules to come. In the Senate, independent-minded Banking Committee Chairman Richard Shelby (R-Ala.) had publicly criticized hedge funds\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2 role in misbehavior by mutual funds<\/span><\/p>\n<p><a href=\"http:\/\/www.google.com\/news\/url?sa=T&amp;ct=us\/6-0&amp;fd=R&amp;url=http:\/\/www.thehill.com\/thehill\/export\/TheHill\/News\/Frontpage\/050406\/hedge.html&amp;cid=0&amp;ei=TaJZRMLzHpWQpwLE7Nj9BA\">ReadComplete Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Like many growth industries that go a-courting in Congress, hedge funds have approached legislative and regulatory hurdles with lobbyists retained and pocketbooks open. As hedge funds continue to attract a broader class of investors, however, they are discovering that educating [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4374","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=4374"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4374\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=4374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=4374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=4374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}