The United People’s Front for the Preservation of Rationalization Association Network Alliance
| May 25th, 2009 | Filed under: Hedge Fund Regulation, Today's Post | By: Alpha Male |
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Remember the part in Monty Python’s Life of Brian when the representatives of the People’s Front for Judea get into an argument with the Judean People’s Front and then can’t remember the name of their own organization? (If not, here’s the video on YouTube.)
That’s probably how the major hedge fund trade associations are feeling right now. Over the past week, there have been two high profile calls for new hedge fund trade associations to address the needs of specific constituencies. This has added to several other calls for new associations meant to represent the interests of various players in the hedge fund sector.
First there was Cliff Asness in the now infamous “Unafraid in Greenwich” letter. Playing off of Barack Obama’s start in politics, Asness concludes:
“Hedge funds really need a community organizer.”
Funds that investment in PIPEs (private investments in public enterprises) went a step further, actually launching their own association: the Direct Funding Preservation Alliance. Reports the WSJ: More…
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The hedge fund industry is naturally a kaleidoscope (in terms of investment strategies, business models, investor base, structures…), and that’s its strength, and value to investors. But this means it’s never going to be possible to have one group with a voice of the majority of the industry. This is clearly an issue currently as the industry needs a strong defence – but I can’t see it happening. AIMA has the best shot, with its global membership spanning managers, service providers, and others, but even AIMA has significant gaps in its actual or perceived constituent base.
And “there is no shortage of apathy in the hedge fund industry”? I don’t doubt that the author didn’t unconfuse himself enough with double negatives.