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Matthias Knab, Opalesque for New Managers:

On June 14, 2024, the Securities and Exchange Commission charged Twenty Acre Capital LP, a registered investment adviser based in Pennsylvania, with presenting misleading performance returns in advertisements for a private fund it managed. Without admitting or denying the findings, Twenty Acre agreed to settle the charges.

According to the SEC order, from at least November 2021 through February 2023, Twenty Acre advertised the performance of its Twenty Acre Global Master Fund LP by presenting returns that were experienced by a single investor in the fund. However, this investor's performance, at times, differed substantially from, and was significantly higher than, the fund's overall performance and returns achieved by other investors. This was due to the fact that certain successful IPO investments the fund had made were credited to this investor's capital account in greater proportion than other investors' accounts. Many of the fund's other investors were restricted from fully participating in these IPO investments due to FINRA rules.

The SEC found that Twenty Acre's advertisements did not disclose that the highlighted performance was based on a single investor's returns which were not representative of the fund's performance. For example, the advertisements showed a 44.8% return for the fund in 2021 based......................

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