Finking On North American Hedge Funds

Plenty has been reported about the unhappiness of European hedge fund advisers with having to comply with the U.S.Securities and Exchange Commission registration requirement. Now, the finger-pointing. Hedge funds on this side of the pond are basically being blamed for the predicament by a pretty big Man. Stanley Fink, CEO of Man Group, that is. Fink said in a Reuters interview that hedge fund fraud "really is more of a North American phenomenon." Noting the absence of U.S.-type bad stuff in Europe, he pointed to the lack of independent fund administrators, which are common on the continent, as a cause. "There are no real examples of European or U.K. blowups or misvaluations," he said. Another issue dogging the industry is public perception, which he said is not helped by the secretive nature of hedge funds and their tendency to avoid the media. "One of my encouragements with most hedge funds is to engage with the press, be proud of what you do and talk to people about it," Fink told Reuters.