Hedgies bury hatchet

9 April 2008 By Richard Beales Follow @richardbeales1

Different industry groups have been busy banding together. With talk of tighter financial regulation on everyone s lips, hedge funds are easy targets for lawmakers. But they re looking relatively blameless for the credit crunch, so it could be a good time for a charm offensive.

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The Washingtonbased Managed Funds Association says it represents the vast majority of the largest hedge funds in the world. The Londonheadquartered Alternative Investment Management Association reckons it is the only truly representative global hedge fund association.

The two groups said on April 7 they would collaborate on key industry initiatives, with chief executives Richard Baker of the MFA and Florence Lombard of AIMA talking about the adoption of a global, principlesbased regulatory system and industrywide compliance with the highest levels of sound business practices and integrity.

On April 8, AIMA said the hedge fund industry was the target of unreasonable criticism. Meanwhile, Baker told Reuters that the MFA's main job was to educate lawmakers, although he warned against arbitrary restraint of the industry. He added that he hoped for closer agreement with the Coalition of Private Investment Companies, formed by Jim Chanos about two years ago.

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