EU compromise on hedge fund regulation likely (Fund News)
A stalemate between the European Parliament and member states on the draft regulation is coming to an end as both sides warm up to the idea of letting hedge funds decide whether they want to get an EU passport to operate throughout the EU 27 or apply to countries' regulators privately, according to EU sources.
The lawsuit, brought by hedge fund group Cambridge Place Investment Management (CIPM), centers around residential mortgage-backed securities (RMBS) in which CIPM had invested around $2.4bn. When the U.S. housing market began to collapse in 2006 and 2007, many of the RMBS, which were assembled by the banks, plummeted in value as many homeowners fell behind on their housing payments.
The following document provides further information on the EU-wide stress test exercise which is now being finalised by the Committee of European Banking Supervisors (CEBS) and the national supervisory authorities, in close cooperation with the ECB.
Paulson's Advantage Funds decline in June (Fund News)
John Paulson's Advantage Plus fund lost 6.9 per cent in June, bringing the first-half decline for the hedge fund to 8.8 per cent, according to investors in the fund. The Advantage fund dropped 4.4 per cent in June and 5.8 per cent YTD.