When hedge funds want to communicate their views in Washington, they turn to the Managed Funds Association (MFA), “the voice of the global alternative investment community.” With about $1.9 trillion in assets, this industry no doubt expects the highest standards in advocating its interests. That’s why it was particularly noteworthy to me as the publisher and author of this site to see that Thoughtsworththinking.net was recently cited by the MFA in its submission to the Securities and Exchange Commission in response to the Commission’s Dodd-Frank Act study of the feasibility of providing real-time public disclosure of short positions.
In its June 22, 2011 submission to the SEC, the MFA cited my April 2009 article Dr. Doom (Nouriel Roubini) Himself May Hold Key to Market Recovery, where I discussed the market’s 1982 rally after economist Henry Kaufman predicted that interest rates would fall. The MFA cited my post to support by analogy the proposition that “There are many real-world examples where the behavior of a high profile investor is likely to have influenced the activity of other market participants.” You can see this citation on page 7, footnote 20, of the MFA’s June 22 letter here.
To put this in perspective, other authorities cited in the MFA’s submission include academic papers published by the Yale School of Management and the Journal of Finance, and articles from The Economist and The Wall Street Journal. Thoughtsworththinking.net is very pleased to have produced material suitable for inclusion in a government filing among authorities of this stature.