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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?

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To: GVTucker who wrote (897)3/19/2006 12:06:43 PM
From: rrufff  Read Replies (1) of 5034
 
As indicated in my prior posts to you, I'm not saying that all hedge funds are scams. I'd advocate clear rules that provide more efficient regulation. Most recently we've seen hedge funds dance by changing their internal rules to avoid registration. Hedge funds have found ways to exploit loopholes. I'm not saying that is necessarily bad. There are many cases where market forces find profit in inefficiencies.

However, the status quo is not something that needs to continue. I'm in favor, as I have posted to you, in finding an EFFICIENT system of registration, disclosure and regulation that won't destroy hedge funds, but will make the types of excesses and manipulation that we have seen less likely. I don't have all the answers but I'd like to see us start looking for them, rather than debating whether there should even be questions.

A hedge fund is a partnership that invests. Nothing more. To associate all hedge funds with someone like Anthony Elgindy is absurd. It would be like associating you with Ivan Boesky. Just because Boesky stole doesn't mean you do. This "secrecy" everyone refers to is just a right to privacy. A hedge fund shouldn't have to disclose all of its positions any more than you should. If a fund's positions get over the 5% threshold, the rules of 13D filings already apply.
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