Below are a list of some of the news stories which caught my attention this week.
Hedge Fund Carried Interest Tax “Loophole” Repeal? – the hedge fund carried interest “loophole” is again being discussed as a potential issue to be addressed by Congress before the end of the year. One proposal introduced by Representative Levin (R) has reportedly passed the House twice but is meeting opposition in the Senate. Watch for a bill to be included as a last minute rider. For more background, see articles by Boston.com and Reuters.
Wall Street “Transaction Tax” Introduced in House – A group of Congressmen introduced legislation to tax Wall Street. According to a press release by Representative Peter DeFazio (D-OR), investment transactions (including stocks, futures, swaps, CDSs, and options) will be subject to “small” transaction taxes which could raise up to $150 billion a year. The tax would not apply to certain groups like IRAs, mutual funds, and HSAs. See also a SIFMA press release which discusses this issue.
Florida to Invest $500MM in Hedge Funds – managers who are looking for an allocation from a large pension plan should look toward Florida which is looking to get into hedge funds. According an article on Pension & Investments, Florida has hired Cambridge Associates as a consultant to help with the search.
Positive November for Hedge Funds – Hedge fund managers gained an average of 1.8% in November according to this Market Watch article.
Other articles I liked this week:
- Be Careful When Covering Your Assets Under Management by Les Abromovitz of the NCS Compliance Blog
- PIPE Conference Take-Aways by David Feldman of the Reverse Merger & SPAC Blog
- The Financial Stability Improvement Act (H.R. 3996) Press Release by House Committee on Financial Services
- New York Continues Pay-To-Play Crackdown by New York Office of the Attorney General
There is a lot of chatter out there about hedge funds and insider trading. Evidently the SEC is continuing to pursue large hedge fund groups who may have been involved.
Bart Mallon, Esq. of Cole-Frieman & Mallon LLP runs the Hedge Fund Law Blog. He can be reached directly at 415-868-5345.