Government Goes Short On Hedge Funds
STEVIE writes that GLG has been added to the list of ‘protected’ companies.
GLG is a hedge fund.
Which makes its money shorting other companies…
GLG Alpha Select Fund aims to generate absolute returns from long and short investments, primarily in UK equity markets.
A market neutral approach aims to have a low correlation to equity markets and other long/short hedge funds.
Och-Ziff Capitalis another fund on the protected list…
The Useless Ban On Short Selling
Posted: 23rd, September 2008 | In: Money Comments (7) | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink
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Regular Features
December 15th, 2008 at 5:12 pm
And let’s hear it for the Man Group; at the time of the shorting ban it was apparently the world’s largest listed hedge fund manager, and for all I know still is..
It too asked for, and got, a place on the list of companies protected from shorting, despite the fact that, like other hedge funds, it made money out of shorting others.
Today we learn that it was one of the investors allegedly defrauded by Madoff, with $360 million ar risk.
It couldn’t have happened to a nicer bunch of people…
http://www.washingtonpost.com/wp-dyn/content/article/2008/12/15/AR2008121500408.html?hpid=moreheadlines
September 23rd, 2008 at 6:24 pm
Careful, The Real Stig.
That is one of the principle tenets of Islamic banking practise…
September 23rd, 2008 at 6:14 pm
I have been saying for years that the idea of having an economy significantly based on the tertiary sector is a recipe for eventual disaster - tick, tick, tick…
Politicians standing about, cheerfully waving goodbye to manufacturing jobs spouting stuff about globalisation and economic realities - fools!
Profit made from financial shenanigans that are not based on lending/investing money for productive use, should be taxed at 70%.
September 23rd, 2008 at 1:53 pm
well you could, but I expect the markets would end up even more up and down than they are at the moment….
September 23rd, 2008 at 12:50 pm
Oh, they would.
Well, you can’t have people wandering around doing naked short selling with the lights on, can you?
September 23rd, 2008 at 12:20 pm
They doing it with mirrors then and nice smokescreens and wool over the eyes. Under the impression we are mushrooms and keep us in the dark? Oh they wouldn’t ? noooooooooooooooo????
September 23rd, 2008 at 12:17 pm
Let’s not be unkind to the quoted Hedge Funds on the list, or at least, let’s not be unkind only to the quoted Hedge Funds on the list.
What about General Electric?
How many people would believe that General Electric is a financial concern?
How many people would believe that General Electric is a financial concern which needs to be protected from short sellers?
The problem is that General Electric’s finance arm is so big that it could take the whole huge edifice down with it, which is presumably why it is on the ‘protected’ list.
People like Jim Chanos, possibly the most famous, if not notorious, of all short sellers accept that some shorts have to be regulated out of existence; they add no value to the market.
But the suspicion has to be that the whole whacking of the shorts was for the primary purpose of buying enough time for Morgan and Goldman to make an orderly exit from a catastrophe they helped to create.
And a quick look at the CV of the US Treasury chief, Hank Paulson, provides some clues…