Hedge Fund Performance Advertising

Recent SEC enforcements on use of performance numbers

RICARDO DAVIDOVICH AND RICHARD STROHMENGER, HAYNES AND BOONE LLP

While performance advertising has long been a focus of the Securities and Exchange Commission, some recently settled SEC enforcement matters are a cause for concern for investment advisers that utilise advertising materials containing performance information prepared by third parties.
 
In February 2016, the SEC charged Cantella & Co., a registered investment adviser with making misstatements to its advisory clients by utilising F-Squared Investment Inc.’s inflated AlphaSector...

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