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

Q&A: Jeff Eaton Talks Capital Raising, CalPERS And The Secondaries Market

Oct 14 2014 | 10:16am ET

Global placement agent Eaton Partners has raised close to $60 billion for some of...

Lifestyle

MacDonald-Korth Offers Insights Into Paintings Bought, Sold By Hedgies

Oct 7 2014 | 9:00am ET

Definitive and complete ratings require an in-person examination of an artwork,...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.