This European hedge fund was subject to an SEC enforcement action alleging market timing trades and failures of disclosure. The investors came from multiple jurisdictions, including the U.S. Investor redemptions began and the media coverage focused on the conduct of the general partners (GPs) and founders.
We worked closely with legal counsel, the GPs, and the fund’s investor relations team to understand the facts and the disclosures. Then, we advised on communications with all stakeholders, including employees, and across global markets. The matter went to trial, the fund lost, and we advised on communications for winding it down and returning investor assets.
The fund appealed and our financial services communications with stakeholders continued through to the final decision to advance understanding of the GPs’ defenses. Ultimately, its appeal significantly reduced the penalties assessed against the fund.