CASLA: are hedge funds thriving or frozen? 04 June 2015Toronto Reporter: Stephanie Palmer
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Canadian hedge funds could have a tough time ahead of them, according to a panellist at the Canadian Securities Lending Association (CASLA) conference in Toronto.
Jeff Olin of Vision Capital Corporation said on CASLA’s hedge fund panel that while Canada has one of the most effective banking systems in the world, it also creates inefficiency.
He suggested that the Canadian financial services industry is not conducive to investment in hedge funds.
Peter Hayes of KPMG disagreed, arguing that the last year has been “positive” for hedge funds. He suggested that an increase in regulation leads to more distribution, and praised the strength of Canadian banks.
Tony Venditti of BMO Capital Markets also defended banks, pointing out that it’s easy to blame them for cautious investment, but they are being highly regulated, too.
“It’s not the banks’ call,” he said, adding: “We are being forced to do this.”
Venditti talked about the importance of anticipating the challenges of the future, and building the systems to deal with them now, referencing the industry’s unpreparedness for the previous financial crisis.
He said: “You would have had to be building from 2004 to be ready for 2008. There are opportunities to be had now.”
He also argued that Canadian banks should be looking to become global institutions, a point which Olin conceded.
Olin considered global marketing a key to Canada’s success, saying: “The world needs more Canada … but we need to go and tell the story.”
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