Mon, 11/09/2020 – 19:00
The Managed Funds Association, which calls itself “The Voice of the Global Alternative Investment Industry”, issued a statement last week after Joe Biden was declared President-elect – to congratulate him, of course, but also to remind him exactly how important hedge funds are to the average American (pause for laughter).
“The hedge fund and alternative investment industry congratulates President-elect Joe Biden and Vice President-elect Kamala Harris on their election victory. Hedge funds are a critical component in the global financial ecosystem, managing more than $3.3 trillion in assets,” the letter says.
It continues, hilariously trying to remind Biden how important hedge funds are to teachers and fire fighters: “In all 50 states, institutional investors like pension funds, charitable foundations, and university endowments rely on investments in hedge funds, credit funds, and other alternative investment funds to diversify their investments, manage risk, and generate attractive returns in all market conditions. Their investments help support the retirement security of more than 26 million teachers, fire fighters, and other public employees, fund college education, and enable the vital work done by foundations and charities.”
And concludes with obligatory olive branch: “The hedge fund industry looks forward to working with the Biden administration on public policies that promote fair, efficient, and transparent capital markets.”
As Michael Bodley noted on Twitter, there are two notable issues on the table for hedge funds with Biden at the helm of the country. The first is potential updates to an SEC advertising rule that could change how hedge funds market. It’s the first time in 60 years this rule has been looked at. Second is the potential for loosening broker-dealer registration, which could create more competition for raising money.
No detail from MFA on what those policies are. But lots on the table.
1) Updates to the SEC’s advertising rule for the first time in 60+ years. Could move the needle on how HFs can market.
2) Loosening broker-dealer registration = more competition for raising HF $.
— Michael Bodley (@michael_bodley) November 8, 2020
Recall, Biden has a checkered history with hedge fund managers. Back in 2017 it was reported that hedge fund manager Bill Ackman tried to make an off-color joke about Biden’s deceased son at the SALT Conference, to which Biden replied: “Who is this asshole?”
OK, well that’s kind of funny, actually.
“Look, I don’t know who you are, wiseass, but never disrespect the memory of my dead son!” Biden is reported to have said.
Regardless, the group lobbying Biden now claims it “represents the global alternative investment industry and its investors by advocating for public policies that foster efficient, transparent, fair capital markets, and competitive tax and regulatory structures.”
It has more than 140 member firms that “collectively manage nearly $1.6 trillion across a diverse group of investment strategies.”
The only thing not diverse about these strategies is that they all take a fee.
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Author: Tyler Durden