Friday, 28 October 2016
Last updated 1 hour ago
Dec 20 2013 | 11:36am ET
You might call Phillip Goldstein the standard-bearer for hedge fund advertising. The Bulldog Investors founder engaged in a bitter—and ultimately unsuccessful—battle with Massachusetts regulators over his right to provide information about his hedge fund.
Goldstein may have lost the battle, but with the passage of the JOBS Act last year and the elimination of an 80-year-old ban on solicitations for private investments in October, he's won the war. Now, he'll seek to enjoy the fruits of that victory.
Bulldog has filed for an exemption that will allow it to make public solicitations. The firm has no intention of actually advertising, but said the exemption will protect its ability to operate its website and "answer questions from potential investors," Goldstein told HedgeCo.
“Before the JOBs Act there was a reign of terror, where hedge funds were scared to have a website or put their name on their door. Every legitimate business has a website, why do hedge funds have to be the only type of company that was required to have a password on their site?" Goldstein asked. “The fear mongers and state regulators insisted that if hedge funds made public solicitations the sky would fall. This is simply much ado about nothing.”
To date, only 31 hedge funds have filed for the advertising exemption.