Risk.net

FSA issues new guidelines for hedge funds

The Financial Services Authority (FSA) in the UK has clarified its position on activist hedge funds. It says that in principle it has no objection to such activism but hedge funds building up stakes on behalf of a single investor, who would then avoid having to disclose those stakes, in order to pursue an activist strategy is likely to be regarded as market manipulation. The FSA posted the notice because of rising concern at the increasingly common practice of aggressive stake-building aimed