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Alternative Market Briefing

In Bulldog Vs. Secretary Galvin of Massachusetts - the state regulator is actually against hedge fund transparency

Friday, January 07, 2011

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Phil Goldstein
From Kirsten Bischoff, Opalesque New York:

Even though Carl M. Loeb University Professor Laurence H. Tribe is returning to the Harvard Law School Faculty this month (after serving as the first Senior Counselor for Access to Justice in the Justice Department), he agreed to represent Phil Goldstein and Bulldog Investments before the Massachusetts State Supreme Court on Thursday. There, Tribe defended the firm's right to make information about their funds available to the public via their website. (It is always important to note, Bulldog is not arguing that unqualified persons should be allowed to invest into hedge funds, but that they have the right to make public information about their funds.)

A case about suppression Speaking before the court Thursday, Tribe referred to the case as one about suppression, not about disclosure. He argued, "The first amendment doesn't say that congress shall not abridge the freedom of speech except in securities cases."

Much of the questioning by the justices seemed to indicate a level of frustration that Bulldog did not simply register the funds, which would then allow them to be free with the information. Tribe's response was that when dealing with information that is truthful and not misleading, it is not the legitimate end of the government to decide what is the best way to get that information out to the people (ie via registration). While not arguing whether or not the government ha......................

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