What are the potential CONFLICTS OF INTEREST between managing a HEDGE FUND and a MUTUAL FUND in the same company? I have not been able to figure this out
maybe giving more attention to the hedge fund since the fees are higher?? Is that an LOS?
I don’t see how such situation could come up.
i think you are right…but it has reared its head indirectly in an Corp Fin question…check pages 237-238 for ajane smith case question question 11.
Sure it could. A hedge fund manager has much more freedom in managing assets. What if you are managing a large cap mutual fund, and you have GE as a core holding because you believe it will have superior returns over 12 months, but in your hedge fund you believe GE will fall in the very short term (1-2 weeks)…you can short it in the hedge fund, and then you are short the same stock you are long in your mutual fund.