Goldstein Denied In Mass. Hedge Fund Free-Speech Battle

Oct 1 2009 | 3:14am ET

Philip Goldstein is well-known for speaking his mind. But a Massachusetts court has ruled against the Bulldog Investors chief in a free-speech case over who should have access to information about hedge funds.

Suffolk Superior Court Judge Judith Fabricant ruled that Secretary of the Commonwealth William Galvin did not violate Bulldog’s free-speech rights when he sued the hedge fund for marketing to an unqualified investor.

The court defeat for Goldstein, who successfully challenged the Securities and Exchange Commission’s hedge-fund registration requirement three years ago, comes in his ongoing battle with a man he has affectionately referred to as a “pompous ass.” Two years ago, Galvin sued Goldstein for providing information about Bulldog to a non-accredited investor, and ordered the hedge fund to pay a $25,000 fine. But Goldstein is not one to take such an affront lying down, and appealed. He said he plans to do so again.

“The ruling is wrong and we are going to appeal it,” Goldstein told Reuters. “Apparently, if you live in Massachusetts you have to be rich to read truthful material on a hedge fund Web site.”

“They are essentially saying that you can’t get a brochure for a Rolls Royce because you can’t afford the car, and that is not right,” he added. Bulldog has a $500,000 minimum investment requirement.


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note