Fund management: Market round-up
Linda Thomsen has been appointed as the SEC's director of the division of enforcement, following the departure of Stephen Cutler. Cutler becomes the second director involved in hedge fund regulation at the SEC to have left in as many months. He follows Paul Roye, who resigned as director of the division of investment management in April.
Roye was crucial in the design of the new hedge fund regulation that will force most managers with US clients to register as investment advisers, while Cutler led the division that took action against fraudulent hedge funds. Both have left to take jobs in the private sector. Thomsen was Cutler's former deputy.
Hedge funds are as long in European corporate bonds as they were in April 2004, just before last May's correction, according to a Citigroup survey. "We find this decidedly worrying," say the survey's authors. "The overall level of positions looks no more precarious to us that it did in late 2004. But when it is coupled with currency market dynamics, we become considerably less bullish."
Seen and heard:
"As for investors looking for high risk, high yield investments, may we recommend horseracing? At least you can enjoy the races while you lose your money."