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Entries from May 2011

Hedge Funds and Advertising: “No advertising” rules more confusing than ever

Posted under Risk Management on May 27th, 2011 by Judith Gross0 comments

In the category of “Laws that Haven’t Caught Up with the 21st Century”, the internet aspects of the rules that prohibit hedge fund advisers from “advertising” may come in first place.  The SEC rules only allow hedge funds to be offered on a “private placement”  basis. This means no general solicitations are allowed.  While this is understandable [...]

Rajaratnam Verdicts Send Message to Hedge Funds

Posted under Insider Trading,litigation on May 11th, 2011 by Judith Gross0 comments

Today’s guilty verdicts in the Rajaratnam insider trading case on 14 counts of securities fraud and conspiracy will send a strong message to hedge funds. The case explored the line between legitimate research and insider trading, striking at the very heart of hedge fund operations. This case highlights the grey area that hedge fund managers must always [...]