December 02, 2006

More Liquidity, More Transparency?

-- By Pushpa Sathish, Staff Writer

While regulatory bodies like the U.S. Securities and Exchange Commission (SEC) are struggling to get hedge funds to bring about transparency in their operations, there’s another option emerging as the fastest way to get them to open up – the fear of liquidity crises like those at Amaranth and Long-Term Capital Management.

Following the IPO by Fortress Investment Group, the first NYSE listing by a hedge fund, Citadel Finance, a unit of the  $12 billion Citadel Investment Group, is now offering to sell its bonds and raise at least $2 million, another first in the hedge fund industry. Citadel recently made news when it lost its head of global stocks.

Citadel seeks to boost its liquidity with this move, but it will also have to make public details regarding how much money it makes and how it rakes in the dollars.

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December 2, 2006 in Regulation, Strategy | Permalink




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