Data from Preqin show European hedge funds suffered outflow of $9 billion in the first quarter, even as eVestment statistics show hedge fund allocation has reached $23.3 billion globally this year, compared with outflow of $100 billion last year. Preqin says factors behind European funds' Q1 performance include concerns about the economy, Brexit and tightened regulation.
Tumbling prices for US crude might be reaching their lowest point as long positions of hedge funds and other asset managers hit their lowest level since November, while short positions near a record level. The volume of shorts is likely to drive oil prices' recovery in the second half of 2017, says Tamar Essner of Nasdaq Corporate Solutions.
Luxembourg is not a tax haven, Prime Minister Xavier Bettel says, despite questions about transparency and reports that secret arrangements let corporations evade billions of euros in taxes. Bettel is against measures such as an EU-wide financial-transaction tax.
Hedge funds appear to be switching to net-long positions on small-cap stocks, resulting in the largest such shift since 1994. This strategy might be unwise, Nir Kaissar writes, as the Russell 2000 Index continues to underperform other indexes by a wide margin and the bull market remains stubborn.
The UK Financial Conduct Authority has issued a major market review saying hedge funds and private equity managers will be subject to a requirement to disclose fees and charges, likely going beyond Europe's revised Markets in Financial Instruments Directive.
Federal Reserve chief Janet Yellen told an audience in London that another financial crisis "in our lifetime" is unlikely and that banks are much stronger than before. Yellen also rejected calls to significantly ease financial regulations.
Legislation in both chambers of Congress would give a phased-in increase to the $3.35 billion budget of the Federal Aviation Administration's Airport Improvement Program. However, about $100 billion during the next five years is necessary for all infrastructure enhancements that airports need, according to Airports Council International -- North America.
Advocacy organizations and construction workers in Charlotte, N.C., are encouraging local officials to enhance policy enforcement to safeguard workers on job sites. Workers have reported wage theft, unsafe conditions and lack of training.
Most financial analysts contend that the long-running stock market rally must come to an end at some point, which could have an adverse effect on retirement savings. Columnist Katie Brockman outlines precautions investors can take in advance to minimize the consequences of a downturn.
The Financial Services Institute has appointed Dean Harman of Harman Wealth Management as the chair for 2018 and named three others to director positions: Ed Forst, president and CEO of Lincoln Investment Planning; Chris Maryanopolis, president of Signator Investors; and Scott Spiker, chairman and CEO at First Command. Of his appointment, Harman said: "When I become chair next year, I will be the second financial advisor to do so, and it shows just how seriously FSI is in fighting for independent financial advisors. With so much happening in Washington and the states, FSI is more critical than ever, and it's a great honor to lead the board in these challenging times."
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