Hedge fund managers give thumbs down to short selling ban

hedge-funds/chairman/

9 October 2008
| By By Liam Egan |

A majority (55 per cent) of hedge fund managers believe the short selling ban will materially affect their ability to implement their investment strategy, according to a survey by the Alternative Investment Management Association of Australia (AIMA).

However, the AIMA survey of 27 managers, covering 28 hedge funds and representing $24.7 billion in assets under management, found only six are considering suspending or closing their fund’s application/redemption terms.

Another key survey finding was that individual comments from respondent managers were “extremely negative” in their assessment of the short selling ban, according to AIMA chairman Kim Ivey.

The most common complaint about the short selling ban was either it negatively affected the manager’s investment strategy or it negatively affected Australia’s reputation as a sophisticated financial centre, he said.

The survey suggests the “short selling ban has not only created industry problems but also damaged Australia’s reputation as a safe and sophisticated market for offshore investors”.

“While the regulator continues to ban short selling, both widespread market liquidity and true price discovery is being undermined,” he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

2 weeks ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 5 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND