Congressman to helm hedge fund lobby

Outgoing Rep. Richard Baker, R-La., former chairman of the House capital markets subcommittee, will be the new president and chief executive of the Managed Funds Association, the organization that represents the hedge fund industry. Mr. Baker will succeed John Gaine, who will be a special adviser to MFA and work on expanding the Washington-based organization’s outreach to regulators and market participants throughout the world. Mr. Baker has represented the sixth congressional district of Louisiana since 1986, and he has been a senior member of the House Financial Services Committee. He takes over MFA at a time when the $1.5 trillion hedge fund industry is facing increasing scrutiny from Congress as well as regulators. Securities and Exchange Commission officials have said in recent months that they are looking at the possibility of insider trading violations at hedge funds, and Democrats in Congress have been eyeing the industry as a source to tap for tax increases. “His expertise in this area, coupled with his deep understanding of the impact of policy making on U.S. capital markets, investment advisers and investors, make him the idea leader for our industry,” MFA chairman Eric Vincent said in a statement. “I have come to appreciate greatly the vital role played by the alternative investment industry in our economy and the importance of its continued success to the competitiveness of our nation’s capital markets,” Mr. Baker said in the statement. MFA was established in 1991 and represents professionals in hedge funds, funds of funds, and managed futures funds.