Too much power in hedge funds' hands?
In January, four industry experts and commentators assembled in London to debate the motion "Hedge funds: too much power in too few hands?" Anthony Hilton, financial editor of London's Evening Standard, and Dr Ruben Lee MD of Oxford Finance Group fought for, while Jean-René Giraud, CEO of Edhec Risk & Advisory, and Michael Spencer, CEO of Icap fought against
Ruben Lee, Oxford Finance Group
Everybody knows that hedges have their value, so there is no need for a complete hatchet job. Alpha males can pretend they have good growth skills, and deliver superior yields, and maybe a few do.
The more prevalent betas can claim that the key benefit of their hedges is to offer investors better risk diversification, without losing expected return. And of course, the top 20 hedge operators earn more than $100m compensation each.
So what's the problem? Nobody knows
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