RK&O Client Alert: "SEC Enforcement Order Reminds Hedge Fund Managers to Stay Alert When Investment Posture Shifts from Passive to Active"

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September 17, 2018

A recent SEC enforcement order offers hedge fund managers a sharp reminder of the need to remain alert to legal issues that may arise when their investment posture toward a public company moves from passive to active. The Order concerns the efforts of a fund manager to place one of its employees on the board of a public portfolio company, and the conflict of interest spawned by that employee’s undisclosed financial relationship with the company’s CEO.

In this client alert, RK&O partners Scott Budlong and Michael Mann examine the order and provide important lessons for fund managers.  

Click here to read the client alert.