Bulldog Investors Sued for non-compliant Website
Financial Times reported this morning that the SEC was suing Philip Goldstein because of compliance issues surrounding his Bulldog Investors Hedge Fund website.
Phillip Goldstein, the activist fund manager who successfully blocked rules requiring hedge funds to register with US regulators, is being sued by officials in Massachusetts who claim he improperly marketed his funds to unqualified investors.
The complaint alleges Mr Goldstein’s Bulldog Investors and other related entities violated US securities regulations for private placements by failing to restrict access to “general advertising and offering materials” on its hedge fund website, according to a statement by William Galvin, secretary of the commonwealth for Massachusetts.
Mr Goldstein did not re-turn a call seeking comment.
“If the regulators were to do an extensive search of public internet sites for hedge funds and related entities, they would no doubt find a whole host of violations,'’ said one hedge fund lawyer. He added that many hedge fund companies were unclear as to what was allowed.
Mr Goldstein and Bulldog Investors failed to control access to fund information that should have been available only to password-holders screened by fund managers, according to the complaint.
A disclaimer on a Bulldog Investors website said users must agree that information it contained did not constitute a solicitation, according to Mr Galvin’s statement. Such a disclaimer, it added, did “not constitute an appropriate or adequate control over a publicly accessible website that displays advertising and/or offering materials for securities”.
Citing an interview with Mr Goldstein, Bloomberg said the information in question that Bulldog provided to an individual was given based on a misrepresentation of the person’s intentions.
Mr Goldstein scored a big win against the Securities and Exchange Commission last year when he won a lawsuit challenging the right of the regulator to require hedge fund advisers to register with it. The rules were thrown out as a result.
This lawsuit re-enforces the necessity of fully compliant websites, something that the HedgeCo Website Creation team has made a priority of from day one.
We are in the process of setting up a compliance section on this website which will serve as a document and knowledge repository for anyone interested in the exact process for creating a fully compliant Hedge Fund website.
The HedgeCo Website team, is available at all times to answer questions regarding Hedge Fund Website compliance issues.
Contact us at: 561 835 8690



David W. Tice & Associate, LLC is a Registered Investment Advisor firm which specializes in Prudent Bear mutual funds as well as other privately offered hedge funds. The company website, 