Hedge Funds Don’t Expect Major Impact From Dodd-Frank: Survey

Most hedge fund managers don't expect pending regulations like the Dodd-Frank law, the Volcker Rule, or Basel III to have any effect on their trading strategies, according to a survey published by research and advisory firm Aksia.

The survey of 125 managers revealed that 58 percent aren't expecting the latest financial regulations to impact their strategies at all, and 40 percent of the relative value managers polled said the new laws may even help their businesses.

This is in stark contrast to the widespread perception that the financial services community is wholly against the new market rules in the United States and Europe.

The survey added that fixed income arbitrage and quantitative managers are expecting to benefit the most from the coming regulations. Aksia said this optimism may stem from the fact that with banks being forced to phase out their proprietary trading operations, there will be less competition for relative value, fixed income and quantitative hedge fund managers to deal with.

The survey also noted a number of predictions for 2012 by the fund managers. 60 percent said it's a virtual certainty that Greece will leave the Euro next year, with 42 percent adding that there's a strong chance Spain or Italy will either default or restructure sometime in the next two years. Meanwhile 65 percent predicted the European Union will issue Eurobonds, which have been mentioned as both a temporary and long-term antidote for the continent's fiscal ills.

They also handed out a D grade to President Barack Obama, Congress, and E.U. leaders for their handling of the economic crisis. As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio