Hedge funds and business journalists

Allen Wastler, the managing editor of CNBC.com, writes about how many hedge fund operators get nervous when they’re covered by the business news media.

Wastler writes, “A noted hedge-fund manager was giving a speech. Tickets were being given to the public on a first come, first-served basis. We sent a reporter who snagged one of those public tickets and sat in on the speech, along with a couple hundred other people.

“After the event, a PR person ran up to our reporter and declared that the whole event was off the record. Well, retroactive off-the-record declarations don’t go far with us. ‘Off the record’ can mean different things to different people (‘not for attribution’ vs. ‘not used at all’ is the usual confusion). But one thing is clear: It is not a magic incantation that can make statements or actions disappear. It’s an agreement made prior to the exchange of information between journalist and source.

“We did the story. The PR person for the hedge fund guy complained. We stood firm. A couple of blogs and a major business magazine quoted the speech at length a few days later so we weren’t alone in our judgment. Just first. But the idea of giving an off-the-record speech to a couple hundred people from the public is a little weird.”

Read more here.