Hedge funds and other trading firms might be able to participate in a historic stimulus package to keep small businesses alive through the coronavirus pandemic.
Confusion and frustration bedevil attempts to keep employees on the job while getting a Payroll Protection Program loan.
The question of whether to partake in the program is dividing members of the money management community. Some traders have called it morally corrupt, while others insist they are small businesses -- just like hair salons, restaurants and dry cleaners -- that could use a helping hand after global markets tumbled and cost them money.
“Just because the business has a name, private equity or hedge fund manager doesn’t necessarily mean that they’re loaded with rich people,” heThe chatter among money managers has grown loud enough to prompt a warning last week from Aksia, which advises institutional investors on placing money with hedge funds and other alternative investment firms.
One manager, who asked not to be named, said he was outraged when he received a note from his accountant analyzing his potential eligibility. Why, he asked, would a hedge fund that earns its money collecting management fees, and can make money if it’s skilled, avail itself of a government handout?
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