NEW YORK (HedgeWorld.com)–James Chanos, president of Kynikos Associates LP, will announce today [March 7] the launch of a lobbying group to represent the hedge fund industry. It is to be named the Coalition of Private Investment Companies (CPIC).
Mr. Chanos has been considering setting up a lobbying group to engage in the education of policymakers about the hedge fund industry and the benefits it provides to capital markets. People who know about CPIC told HedgeWorld.com last month that the coalition will not seek to replace the Managed Funds Association as a representative of the hedge funds industry nor to compete with it in terms of conferences, publications or industry best practices.
The CPIC’s operations will be led by Andrew Lowenthal of Porterfield & Lowenthal, a new lobbying group set up to represent the interests of some Wall Street groups.
The origins of the CPIC date from 2004 when Mr. Chanos testified before the Senate Banking Committee about the then-mooted registration of hedge funds with the Securities and Exchange Commission. His view was that the anti-registration MFA and pro-registration policymakers were talking past each other, and that “there is a middle ground.” After registration rules were imposed, Mr. Chanos said he thought a more moderate voice representing hedge funds in Washington could have seen things turn out differently.
Kynikos is noted for its short-selling strategy, while Mr. Chanos has carved out a reputation as a commentator on corporate malfeasance, notably concerning the collapse of Enron.
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