Arrowgrass Blames Error For Making It Calif.'s Biggest Lobbyist

May 3 2013 | 9:37am ET

A New York hedge fund is California's biggest-spending lobbyist—and by a wide margin. Or it's not; it depends on who you ask.

California's Secretary of State said that Arrowgrass Capital Partners spent $2.2 million on three lobbyists, more than double the second-biggest spender, the Western States Petroleum Association, Sacramento's reigning lobbying king. The secretary's office said those three employees are placement agents.

Arrowgrass begs to differ, noting that the three are actually in-house employees and not outside placement agents, and that its status as the state's richest lobbyer is due to an error.

"We're not really lobbyists but we get caught by the California lobbyist law," Stephen Ellwood, the hedge fund's chief compliance officer, told the Sacramento Bee. But, he added, "our first-quarter filing contains a manifest error which we are working to correct."

Ellwood said that, once the correction has been made, Arrowgrass will fall out of the top 20 lobbyists in California, meaning it spent less than $268,080 lobbying in the state in the first quarter.


In Depth

Virtu Celebrates Another Year Without a Single Day of Losses

Feb 26 2015 | 9:05am ET

High-frequency trading firm Virtu Financial Inc. reported another year without a...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk: How To Get In Front Of The Problem

Feb 26 2015 | 9:53am ET

In considering the topic of risk in the hedge fund world, specifically, the oversight...

 

Editor's Note