INTERNATIONAL: AIMA and MFA defend Hedge funds

Tuesday October 14 2008

Italian finance minister Giulio Tremonti, who recently called for the abolition of the hedge fund industry has been met with fierce criticism from representative bodies of the alternative investments sector.

The Alternative Investment Management Association (AIMA) along with the US-based Managed Funds Association (MFA) have in a joint statement responded to comments made by Mr. Tremonti in Washington.

Florence Lombard, chief executive at AIMA, and Richard Baker, president and chief executive the MFA, said hedge funds were `private pools of capital` that played a vital role in the global economy.

`This is a time of unprecedented instability in the markets, not a time to think about abolishing an industry that is an essential source of liquidity.

`In the midst of this global financial crisis, the hedge fund industry is fully engaged with regulators and policymakers to provide solutions that will benefit the markets and help stabilise the economy.”