Bankers’ bonuses – the opportunity
Mon Mar 5, 2012
Because hedge fund managers can offer investors the ability to hedge as well as to dial up and down the risk they want to take, they offer what is simply a better and more sophisticated way to manage money
By Neil Wilson
this new age of austerity, public debate in the UK and other
major economies continues to be inflamed by uproar over the
perceived scandal of bankers’ bonuses. Rightly or
wrongly, the public perception seems increasingly clear that
the banks have been free-riding on either explicit or implicit
taxpayer guarantees. And this has been piling the pressure on
politicians to "do something" about it.
But where does all this public furore and desire for
retribution leave hedge funds? In the short term, it leaves
them in an awkward place, it seems to me – damned in
the public mind with guilt by association and their perceived
proximity to the banks. After all, hedge funds do work very
closely with banks – who provide key finance and
operational support, plus trading ideas.
As many in the industry have argued forcefully since 2008
(ourselves included), unlike the banks the hedge funds...
ISSN: 2151-1845 / CDC10004H
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