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Fund managers testify at Congress


    WASHINGTON (Reuters) - Top executives of several major U.S. hedge funds testified Thursday at a House Oversight and Government Reform Committee hearing on the financial crisis. Highlights:

    * Harbinger capital Partners senior managing partner Philip Falcone says he supports greater transparency, better reporting for hedge funds.

    * Falcone says short-selling is valuable to markets, didn't put companies out of business.

    * Falcone says over-leveraged balance sheets, poor management decisions, flawed business plans hurt companies.

    * Falcone says hedge fund industry pay is performance-based, opposes any pay restrictions.

    * Paulson & Co. president John Paulson says financial institutions must strengthen balance sheets by raising equity privately and publicly.

    * Paulson says remaining $450 billion in federal bailout package needs to be used for additional equity injections.

    * Renaissance Technologies president James Simons says partially blames regulators for taking hands-off approach on investment banks' leverage, CDS market.

    * Simons says hedge fund sector did not contribute to financial crisis.