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New York (HedgeCo.Net) – Australian regulators have extended the ban on short-selling, saying the move was in the “national interest” of the country.
As large national banks prepare to release their profits in the wake of more write-downs and rising debt, regulators wanted to avoid the effects that short-selling by aggressive hedge funds would have on the market.
"We welcome any additional steps that further boost stability in these difficult conditions," said Senator Nick Sherry. "This is a decision made firmly in the national interest and regardless of any sectoral interests."
The Alternative Investment Management Association was disappointed with the decision, saying the ban reduces liquidity in the market. Both the Federal Government and the Australian Bankers Association agreed with the extension of the ban, while others disagree with the reasons outlined by the regulators.
The Australian Securities and Investment Commission said they would “not hesitate to act” should it be discovered that individuals or companies were skirting the ban.
The ASIC originally enacted the ban last September amidst the market collapse and crumbling financial institutions. The United States and Great Britain enacted bans on short-selling as well, which were lifted shortly thereafter.
The Australian government said they are hoping to lift the ban eventually, after the completion of their new short-selling disclosure requirements.
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The Washington Times – Year after year, the hedge fund industry dazzled Wall Street by delivering "absolute returns" – outsized profits whether markets rose or fell. Using sophisticated trading models, the pools of managed capital made wealthy people wealthier with eyepopping returns that carried seemingly moderate risk.
Not these days. Blindsided by a colossal market collapse and the widening Bernard Madoff scandal, hedge funds suffered their worst showing on record last year. And they’re bracing for more pain in 2009. The industry’s fall proves that even the quantitative brilliance and market wizardry of elite hedge funds are no magic bullet for investors during brutal times.
"Hedge fund managers have always said, ‘Look, we know how to make money even in difficult times,’ and that turns out to be a fallacy," said Timothy Brog, portfolio manager of New York-based hedge fund Locksmith Capital Management.
Daily Herald – Year after year, the hedge fund industry dazzled Wall Street by delivering "absolute returns" – outsized profits whether markets rose or fell. Using sophisticated trading models, the pools of managed capital made wealthy people wealthier with eye-popping returns that carried seemingly moderate risk.
Not these days. Blind-sided by a colossal market collapse and the widening Bernard Madoff scandal, hedge funds suffered their worst showing on record last year. And they’re bracing for more pain in 2009. The industry’s fall proves that even the quantitative brilliance and market wizardry of elite hedge funds are no magic bullet for investors during brutal times.
Tacoma News Tribune – Year after year, the hedge fund industry dazzled Wall Street by delivering “absolute returns” – outsized profits whether markets rose or fell. Using sophisticated trading models, the pools of managed capital made wealthy people wealthier with eye-popping returns that carried seemingly moderate risk.
Not these days. Blind-sided by a colossal market collapse and the widening Bernard Madoff scandal, hedge funds suffered their worst showing on record last year. And they’re bracing for more pain in 2009. The industry’s fall proves that even the quantitative brilliance and market wizardry of elite hedge funds are no magic bullet for investors during brutal times.
“Hedge fund managers have always said, ‘Look, we know how to make money even in difficult times,’ and that turns out to be a fallacy,” said Timothy Brog, portfolio manager of New York-based hedge fund Locksmith Capital Management.
