AIMA defends hedge funds after shorting 'scandal'

AIMA says the hedge fund industry is facing a renewed wave of criticism “at a time when managers are doing what they set out to do – deliver returns for their investors”. Florence Lombard, chief executive of the association, says practices such as shorting are being singled out for “unwarranted” denigration even though they are widely accepted as an important part of fund management. On March 19, the FSA announced it was investigating share trading in the UK after concerns were raised that “completely unfounded rumours” were leading to short-selling. The regulator said it would not tole...