Hedge Fund Group Pledges Transparency

A major hedge fund association outlined several initiatives on Tuesday for the industry to become more transparent and cooperative with regulators.

The Alternative Investment Management Association says it supports regular reporting of major fund positions that could have consequences for the global financial system. It also proposes disclosing the industry's aggregate short positions, and supports policies that would crack down on gambles like "naked" short selling, in which settlement failure is more likely.

The London-based group, whose 1,200 members manage 75% of hedge-fund assets, also called for a global regulatory framework overseen by one supervisor. AIMA proposes that the supervisor be modeled around the U.K.'s Financial Services Authority. ...