Hedge funds typecast
Hedge funds are too often being portrayed as either heroes or villains, according to the vice-chairman of leading Mellon-linked EACM Advisors, Robert Jaeger.
Jaeger told the Conference of Major Superannuation Funds on the Gold Coast that there was a need to do away with many of the misconceptions surrounding hedge funds.
He said it was ironic that hedge funds were often seen as “secretive and unregulated”.
“The fact is, they are secretive precisely because of the way they are regulated,” Jaeger said. “Certainly, in the case of the US, there are very strong regulations which prevent hedge funds from presenting themselves as asset managers.
“And while hedge funds may be exempt from certain types of regulation, they are still totally covered by all the other regulations with respect to use of leverage, fraud and insider trading,” he said.
Jaeger said that while in Australia there was a little more freedom with respect to hedge funds presenting themselves to the public, there were still cautions and caveats, with the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority having developed various checklists and requirements for hedge funds.
AUTHOR
Mike Taylor
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