Japan to eye hedge funds

Japan's Financial Services Agency said today that it will begin monitoring hedge funds that operate in Japan, according to published reports.
MAY 01, 2007
By  Bloomberg
Japan's Financial Services Agency said today that it will begin monitoring hedge funds that operate in Japan, according to published reports. Hedge funds that invest in Japan currently account for about $36 billion under management, have been performing poorly of late due to a slide in company stock prices, according to a Reuters report. Most Japanese hedge funds follow a similar strategy, buying small-cap stocks and shorting more liquid larger-cap shares, so when prices move against them they may sell and at the same time exacerbate falls in prices, according to the report. Singapore-based Eurekahedge Pte. Ltd.'s index of Japanese hedge funds was off 3.4% in 2006 and is up 1.3% year to date. The fact that hedge funds are adopting similar strategies has also worried the Bank of Japan because it could represent a risk to the stability of financial markets, the report stated. The Japanese Central Bank is concerned that if a large hedge fund ran into trouble similiar to what happened to Greenwich, Conn.-based hedge fund Amaranth Advisors LLC when it lost $6 billion due to bad energy trades last September, then that ripple effect could impact world markets.

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.