Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
Daily Guide – Foreign investors in the Nigerian capital market withdrew some $4 billion from the Nigeria Stock Exchange and precipitated its steep decline, the Exchange’s Director General, Professor Ndidi Okereke-Onyiuke has said.
Appearing before the joint Senate Committees on Finance, Capital Market, Banking, Insurance and other financial institutions investigating the economic crisis facing the country, Mrs Okereke-Onyiuke said in 2008, foreign hedge fund managers went out and withdrew their investment of N556 billion due to the financial crisis in their countries.
Okereke, who was responding to questions posed to her by Senators as to the reasons why share prices in the stock market kept crashing despite assurances by financial managers that the fundamentals of the nation’s economy are strong, said hedge fund managers were shocked by the global financial crisis and quickly withdrew their investments from Nigeria and took it back to their countries.
Investment Consultant – Reports that U.S. Sens. Carl Levin’s and Charles Grassley’s new bill on hedge fund regulation will force funds to publicize the names of clients are untrue, the senators said.
"Contrary to some press reports, the Grassley-Levin bill to regulate hedge funds does not require the disclosure of hedge fund clients who merely invest in the fund," they said. "Instead, the bill requires disclosure of a hedge fund’s beneficial owners who profit from the fees generated in operating the fund. Such ownership information has already been requested and provided on a routine basis for years in the voluntary hedge fund registrations filed with the Securities and Exchange Commission."
International Herald Tribune – Two senior senators have introduced legislation to impose U.S. government oversight on hedge funds.
The legislation by Senator Carl Levin, a Democrat of Michigan, and Senator Charles Grassley, a Republican of Iowa, was filed Thursday while the administration of President Barack Obama prepared a broader legislative overhaul of the regulatory system, including an effort to regulate hedge funds more tightly.
State regulators and a panel created by Congress to oversee the $700 billion Troubled Asset Relief Program issued separate but similar regulatory proposals Thursday. The proposals also seemed to mirror closely many of the provisions that administration officials say will be part of their plan.
All Headline News – Hedge funds will require registering under a new proposal to regulate the market segment that lost $600 billion in 2008 due to financial crisis, an all time record.
Under the bill by two senators today would lead to the regulation of hedge funds by the Securities and Exchange Commission, a step that is considered to protect investors and prevent the U.S. financial system from further sinking into the recession.
The Hedge Fund Transparency Act, sponsored by Senator Carl M. Levin (D-Mich.) and Charles E. Grassley (R-Iowa), was filed on Thursday amid the new administration’s initiative to overhaul some legislation of the regulatory system.
