High profile hedge funds

03Feb06

The rise of hedge funds as an asset class has set off a wide range of effects. The greatest of which has been a marked increase in the press coverage of their activities and the personalities involved. For many hedge funds where secrecy is paramount this must be disconcerting. This is probably had a role in the opposition to SEC registration requirements for hedge funds.

Kara Scannell in the Wall Street Journal reports that 934 hedge fund advisers have registered with the SEC due to the new rules in place. In great detail the fund managers are now required to report detailed information abou their operations and the personnel involved.

Jason Singer in the Wall Street Journal notes the potential power of hedge funds to influence corporate dealmaking. The Mittal Steel acquisition offer for Arcelor SA has the backing of hedge funds, but they are unable to act given the inability to borrow shares of Mittal. For those interested in the mechanics of merger arbitrage this is an interesting nugget of an article.

Truth on the Market notes that the hedge fund boom is not over for high profile managers as Jack Meyer, former head of Harvard’s endowment, has been able to raise a record amount for his new hedge fund.

The power of hedge funds arise from their assets under management and the manner in which it is invested. SEC registration or not, the press will continue to cover hedge funds as the force they have become.



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