SEC protects hedge fund GLG from shorting
GLG Partners, the UK hedge fund manager listed in the US, has been added to a list of financial services companies that investors may not short, along with mainstream US asset manager Legg Mason and Swiss bank Credit Suisse.
NYSE-Euronext, the company that runs the New York Stock Exchange, said the Securities and Exchange Commission had added the three names, along with 28 others, to the list of 799 companies it had temporarily put beyond the legal reach of short sellers last week.
It said: "The SEC has informed us that all companies that were covered by Friday’s order will also be covered by the newly revised short sale prohibition. The SEC has delegated to each national securities exchange the authority to identify additional listed companies that qualify for inclusion in the list of companies covered by the revised prohibition. The additional companies must be... banks, savings associations, brokers, dealers and insurance companies.
"Companies that were on the original list, or that fall into one of the categories expected to be covered by the new order, may opt out of the application of the revised short sale prohibition."
GLG, one of the largest hedge fund managers in Europe with $24bn (€16bn) of assets under management, follows a multi-strategy approach to investment that includes a fund, run by co-founder and co-chief executive Noam Gottesman, that can take long and short positions in US equities.
Hedge fund managers have complained about the imposition of a ban on short selling on selected stocks.
GLG declined comment.
-- write to whutchings@efinancialnews.com
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