Market Tips: Hedge Funds Down, but Not Out
US Treasury Secretary Timothy Geithner asked Congress to bring hedge funds under Federal supervision for the first time Thursday. The Treasury chief wants funds to register with the Securities and Exchange Commission to increase transparency in the sector.
But the tighter regulations won’t necessarily take another chunk out of the beleaguered industry’s profits, experts told CNBC.
Another Slump for Hedge Funds?
Over half of hedge funds in the US are already registered with the SEC and the sector shouldn’t see a major slump on the back of Geithner’s move, Ken Heinz from Hedge Fund Research told CNBC.
The new rules shouldn’t put international investors off from investing in the US hedge, Heinz added.
Hedge Funds are Less Leveraged
In the wake of the credit crisis, hedge funds have decoupled from the stock market and now have more sensible leveraging, David Miller from Cheviot Asset Management told CNBC.
Miller sees opportunities in the sector, along with index linked gilts and stocks in the mining, oil and defensive sectors.
Just a Bear Market Rally?
We are seeing the hallmarks of a bear-market rally in stocks, warns Axel Merk, president & CIO of Merk Investments. He also tells CNBC why the dollar is set to weaken.
Time for a Pull Back
Mark Fichera, associate director at Cranport and Evan Mcquire, head of equities at Halifax Investment Services, explains to CNBC why he thinks that the current stock market rally is just a bear-market bounce.
Aussie Dollar to Remain Stable
The Australian dollar will be stable throughout the end of the year and hold its own against the New Zealand dollar, says Michael Woolfolk, senior currency strategist at The Bank of New York.
S&P Struggles to Shake the Bear
Until the S&P 500 Cash Index can take out its 1,000-point level it should still be seen to be in a bear market, Clive Cocoran from Tradewithform.com told CNBC.