Bulldog Seeks Rehearing Of First Amendment Case

Oct 10 2011 | 12:03pm ET

It's no accident that Philip Goldstein named his hedge fund Bulldog Investors: The man is not one to give up when he thinks he's right.

Goldstein has asked Massachusetts' highest court to reconsider its ruling last month that Bulldog's free speech rights were violated when the state's Securities Division fined it for providing information to a non-accredited investor.

In its petition for a rehearing, Bulldog argues that it never made an offering when it offered information on its Web site and via e-mail. Given that "no illegal transaction is being promoted," the New Jersey-based hedge fund argues that "it is undeniable that these rules, on their face and as applied, prohibit the non-rich from reading the same non-misleading information about unregistered securities that the rich can read."

"The court's erroneous ruling is evidenced by its flawed reasoning, but the apparent and more fundamental cause of the court's error is its unwillingness to enforce First Amendment principles as rigorously when the offending law is a federal and a Massachusetts securities regulation as it does when the challenged law does not regulate securities," Andrew Good, Bulldog's lawyer, wrote.

Bulldog ran into trouble four years ago when it e-mailed information to a non-accredited investor. The hedge fund was slapped with a  cease-and-desist order and ordered to pay a $25,000 fine.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note