Hedge Funds Fire Back at ICI

June 16, 2004 (PLANSPONSOR.com) - The mutual fund industry blames hedge funds for picking "the pockets of long-term mutual fund investors," but hedge funds say mutual funds could be doing more.

Reacting to comments made to the National Press Club by the new president of the Investment Company Institute (ICI), Paul Schott Stevens, the Managed Funds Association (MFA) said the ICI could “better serve and protect” mutual fund investors by directing its attention to “structural reforms necessary in the mutual fund industry to ensure that recent misconduct is prevented going forward.”

As an example of some reforms the ICI could undertake, the Washington, D.C.-based MFA threw its support behind efforts underway the Securities and Exchange Commission (SEC) “to implement long overdue reforms in the mutual fund industry which are designed to realign the interests of mutual fund companies with their investors,” MFA President John Gaine said in a news release.

MFA is the primary trade association representing professionals who specialize in alternative investment strategies including hedge funds, funds of funds and managed futures funds through effective advocacy and education.   MFA’s approximately 760 members manage a significant portion of the estimated $800 billion invested in these strategies.