Politics & Regulation

Partnering with the government proves a hard sell

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Managers are trying to get into the TALF auctions, but many are leery of the political complications of the bigger PPIP program.

Managers are trying to get into the TALF auctions, but many are leery of the political complications of the bigger PPIP program

By Irwin Speizer

When the U.S. government launched the Term Asset-Backed Securities Loan Facility (TALF) to help restart clogged credit markets, Duncan Hennes went shopping for a hedge fund through which his investment company, Rye, N.Y.-based Atrevida Partners, could participate. He couldn't find one that was ready.

So Hennes started his own hedge fund, Atrevida TALF Opportunities Fund, and used it to invest in one of the first TALF auctions, held in April. He used subsidized government loans