Hedge Fund Lobby President Criticizes SEC Short Sale Rule
WASHINGTON -(Dow Jones)- The head of the largest U.S. hedge fund lobby group criticized a pending emergency order to require hedge funds and other large investors to publicly disclose their short positions in stocks each day.
Managed Funds Association President Richard Baker, a former Republican congressman, argued that the order, which could be issued by the Securities and Exchange Commission as soon as Thursday, could create more volatility in the markets by calling more attention to troubled firms.
Under pressure from Wall Street firms, SEC Chairman Christopher Cox this week launched an effort to stem a tide of short sales that are driving down financial firms' stocks.
Currently, hedge funds must disclose their short positions periodically.
More volatility? Really. I think he needs to try another angle.
As traders, there are many tools we can use to spot that flow of money and we can benefit from it. The trick is spotting the moment it dries up and not to be the guy left in the room without a chair.
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on Thursday, September 18, 2008 at 9/18/2008 05:39:00 PM.
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