Respected columnist warns on hedge funds, prompting response from AIMA chapter
May 27th, 2008 | Filed under: Hedge Fund Industry Trends, Hedge Fund Regulation, Media Coverage of Hedge FundsAmongst public relations professionals, there is an axiom that goes something like this: In the absence of the complete story, journalists are forced to create their own conclusions.
Many companies have learned that starving the news media of the facts they demand often backfires. In such a situation, journalists a) have no choice but to attempt to fill in the gaps with conjecture and b) often do so totally unchallenged. So “filling in the gaps” is actually a very rational response when you think about it.
A column on Monday by one of Canada’s most respected commentators makes this point in spades. In a piece entitled “Hedge Funds: the credit crunch’s enigma“, Globe & Mail columnist Eric Reguly makes a series of remarks about hedge funds that even he suggests is based on little, if any, hard facts.
Clearly miffed about another drive-by smearing, the Canadian Chapter of AIMA (the Alternative Investment Management Association) followed its parent organization’s lead this week by speaking out - this time in a letter to Reguly obtained by AllAboutAlpha.com yesterday.
As you may recall, AIMA’s London headquarters issued a rare rebuke of hedge fund media coverage last month in the form of a press release quoting the organization’s Chief Executive (see related posting, read press release). Taken together, these responses suggest AIMA is taking a more active stance on educating the media and the public at large about alternative investments. And that’s a good thing.
Here’s what Reguly said about hedge funds on Monday:
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