Hedge fund slams Japanese government

16 April 2008

A top hedge fund executive has issued a stinging rebuke of the Japanese government, following its turning down of a share-buying bid.

The Children's Investment Fund Mangement had wanted to buy up around ten per cent of Electric Power Development Co - doubling its current stake.

According to John Ho, head of the $10 billion fund's Asian division, this move was directly blocked by the Japanese government.

"It's a sad day for Japan. Hard-working Japanese people have been failed by the lack of leadership,'' he commented.

"Japanese assets will also be undervalued because legitimate capital is being turned away [by such decisions].''

Mr Ho received strong support from fellow hedger Hiromichi Tsuyukubo, who helps to manage $500 million of assets at the Tokyo-based Myojo fund.

"I'm quite frustrated with the latest development…it's hard to understand what these bureaucrats are thinking," he told the news agency.

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