05: Global Capital Markets and the Role of Hedge Funds

Hedge funds increasingly play an important role as an investment form on the modern capital market. Capital administered by hedge funds amount to more than 1000 billion dollars with annual growth rates of around 20 %. Due to the reduction of minimum investments, hedge funds are more and more available for small investors. In Europe Luxembourg and Ireland have become favorite locations for hedge fund business thanks to positive framework conditions, while Austria so far has remained relatively unattractive. In public discussions hedge funds often are seen as an evil, conducting unhealthy and overly speculative operations which remain largely in the dark and endanger the stability of the financial system. Not surprisingly the booming hedge fund sector has attracted the attention of regulators and Central Banks. In this workshop, experts from business, academia and the European Union will discuss the functioning and role of hedge funds; doing away with some of the myths surrounding them; present ideas for a common European regulatory framework which would, however, not impair the necessary flexibility needed to safeguard the power of this instrument and make propositions how to make Austria an attractive location for hedge fund activities;