SEC to take long look at short-selling; May lift restrictions on use of hedging by mutual funds.(News)

Investment News, August, 2003

Byline: Frederick P. Gabriel Jr. The Securities and Exchange Commission is pressing ahead with an investigation into whether mutual funds should be given freedom to make greater use of investment strategies such as short-selling. But the possibility that the agency will lift restrictions that prevent mutual funds from investing like hedge funds is raising eyebrows.

The SEC staff may issue specific recommendations on the matter in the next few months, says Commissioner Cynthia Glassman. "We need to look seriously at the limits we impose on mutual funds to see if they make sense,'' she says. "From the perspective of improving performance for investors during down markets, it might make sense to change some of the rules.'' Ms. Glassman...

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