Monday, April 20, 2009

Springing forth: Op-eds by hedge fund managers

April showers have brought a bloom of recent op-ed articles by prominent hedge fund managers. Mark-to-market accounting, regulation of financial services, executive compensation and corporate governance are the subject of articles written by the likes of James Chanos, Carl Icahn and Paul Singer in the Wall Street Journal and New York Times.

These are high-profile and important pieces because they demonstrate how the interests and opinions of the hedge fund industry are aligned (in these cases) with the best interests of the country. Icahn argues that shareholders should have more influence and that it should be easier to replace corporate boards. Who would disagree? Chanos writes that while mark-to-market accounting isn't perfect, it is an important contributor to integrity of financial statements. Seems logical. Paul Singer, head of Elliott Management, writes that "private responsibility and practical government regulation will help ensure that the capitalist system continues to be a source of opportunity and prosperity throughout the world." Sounds reasonable.

Articles like these, appearances on CNBC, and meeting with lawmakers are important steps in publicly aligning the interests of the hedge fund industry with the economic recovery and the creation of a well-functioning marketplace that this blog calls the New Financial World Order.

See also Andy Kessler's op-ed on bear raids that provides good perspective on the shorting of financial companies.

No comments: