Thursday, March 22, 2007

WSJ: Hedge Funds Vote (Often)

I've linked to the intro, the full story is subscription-only. I blogged on this awhile back, and I hope that significant reform is achieved. In the print edition, the story is on page C1. The SEC is said to be in a "may act" mode. When hedge funds borrow shares for the purpose of voting on issues which can have short-term effects on share prices, be certain that they have no one's interests at heart but their own. "It's called "empty voting", and from here looks like a fundamentally corrupt practice. I'd say, "ban it." But then, I'd probably say "ban hedge funds" also. As has been said, they are not a new way to invest, they are a new way to enrich fund managers.


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