U.S. Hedge Fund Destination
Hedge Funds View U.S. as Attractive Destination
“A lot of what’s happening actually makes sense,” said Brosens, a founding partner of Taconic Capital Advisors LLC. “We like New York. The regulatory framework is just better.”
Lawmakers in Washington and Europe are pressing for tighter rules for the financial industry after the collapse of the U.S. housing market triggered the worst economic crisis since the Great Depression. Regulators see the complexity, interconnectedness and leverage of hedge funds as a greater concern for the stability of the financial system than the size of the funds, a report by the International Monetary Fund and the Bank for International Settlements said in November.
European regulators said last year they may seek to restrict hedge funds’ use of debt and limit bonuses, rules that would apply to U.S. managers seeking to market themselves to European investors.“It’s going to make it quite complicated,” Brosens said. Source