Bulldog Raps Mass. For Inaccurate Statements

Jul 9 2007 | 2:31pm ET

The battle between Bulldog Investors and Massachusetts regulators is turning nastier.

In a letter to James Cappoli, a securities lawyer in Massachusetts Secretary of State William Galvin’s office, Bulldog attorney Andrew Good accused the lawyer of hypocrisy.

Bulldog Investor's Phil GoldsteinBulldog Investor's Phil Goldstein“The Enforcement Division’s mission includes assuring the accuracy of statements about securities,” Good wrote, according to HedgeFund.net, which obtained a copy of the missive. “It must adhere scrupulously to its own standards.”

Good’s complaint referred to a recent hearing, where Cappoli claimed a Bulldog brochure available through its Web site said “Bulldog Investors has produced above average returns with below average risk, enticing the investor to invest with no risk.”

Good’s letter objected to the use of “entice” and questioned Cappoli’s understanding of the document. The Bulldog lawyer noted that “below average risk” and “no risk” are not one and the same, and denied that the firm has ever claimed to “always” do better than the Standard & Poor’s 500.

Galvin in January filed suit against New Jersey-based Bulldog, accusing it of marketing its hedge funds to non-accredited investors. Bulldog founder Phillip Goldstein has savaged Galvin’s complaint, painting it as a First Amendment battle.

“I’m not going to let some pompous ass sitting in Boston tell me I can’t talk to somebody or give somebody information when they ask for it,” he said in February. “This is not really about hedge funds; it’s about the First Amendment, and I think Galvin is just trying to get a trophy.”


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.