The new Islamic hedge funds
source: http://dealbook.blogs.nytimes.com/2007/10/22/kuwaiti-firm-to-launch-islamic-hedge-fund/
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- sloan
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Oh man, this is SO 21st century: a new Kuwaiti hedge fund aims to take some of those Persian Gulf millions and invest them in a way that complies with Sharia -- Islamic law. Barclays is starting one soon, too.
So what makes a hedge fund Sharia-compliant? Well, for starters, Islam forbids gambling, and some kinds of short-selling -- that is, selling an asset because you think its price will fall -- come pretty close.
I don't know about all this. I invest a bit in one of those socially-responsible mutual funds and, you know what? It doesn't make me feel any better about anything.
So what makes a hedge fund Sharia-compliant? Well, for starters, Islam forbids gambling, and some kinds of short-selling -- that is, selling an asset because you think its price will fall -- come pretty close.
I don't know about all this. I invest a bit in one of those socially-responsible mutual funds and, you know what? It doesn't make me feel any better about anything.
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Vierotchka
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Sharia law also forbids taking interests on loans.
- 4 years ago
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Vierotchka
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khsing
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Here's some more background about the Sharia hedge fund debate.
- 4 years ago
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khsing
