Hedge probe may be boon for market-timing funds; SAAFTI members upset by Spitzer's remarks.(News)

Investment News, September, 2003

Byline: Sara Hansard Allegations that several major mutual fund companies improperly allowed a hedge fund to time the market could be a blessing in disguise for true market-timing funds. At least that's what advisers who practice market timing believe. An enforcement action announced Sept.

3 by Eliot L. Spitzer, New York State's attorney general, against Canary Capital Partners LLC, a hedge fund in Secaucus, N.J., also appears likely to help spur increased regulation of the $665 billion hedge fund industry. During the market slump of the past two and a half years, financial advisers have increasingly turned to hedge funds and market-timing investment strategies to preserve their clients' assets. But Mr. Spitzer's comments against market...

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