FSA steps up hedge fund oversight - papers 29 August

The reason is the regulator’s concern over the increasing levels of market risk posed by activist managers, with particular focus on the 25 biggest funds in London. The 31 largest funds now each manage more than $1bn in assets, the paper notes, and together control about half Europe’s $325bn hedge fund industry. The several hundred other funds controlling the remaining 50% of the market are overseen by the FSA’s wholesale division. The Telegraph says so-called event-driven funds are increasingly looking to change factors ranging from management to financing. MATT BARRETT’S DAYS ...