Hedge Funds Balk at ‘Really Problematic’ Rules Steering ESG
- Short sellers are seeking specific guidance from regulators
- Man Group says existing guidelines are ‘long-only friendly’
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Hedge funds keen to get a piece of the $40 trillion ESG market are voicing growing frustration over what they say is an absence of clear regulations for one of their most popular investment strategies.
Firms including Man Group Plc and BlueBay Asset Management LLP say disclosure rules for environmental, social and governance investing still don’t explain how hedge funds should account for short selling. As a result, many are now turning to their lawyers to help them avoid the kinds of legal risks that might arise if they misstate their ESG positions.