Comments on: When hedge funds go online http://blogs.reuters.com/felix-salmon/2013/07/11/when-hedge-funds-go-online/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: EllieK http://blogs.reuters.com/felix-salmon/2013/07/11/when-hedge-funds-go-online/comment-page-1/#comment-48135 Mon, 23 Sep 2013 00:42:01 +0000 https://blogs.reuters.com/felix-salmon/?p=22241#comment-48135 You should ask an attorney who has no self-interest in this, thus is not trawling for clients (neither defendants nor plaintiffs). That won’t be easy to accomplish, as most attorneys are unwilling to comment on matters, in an idle, conjectural sort of way, without heavy disclaimers to ward off tort-esque lawsuits.

I know of an attorney who follows Reg. D and the JOBS Act as a hobby interest. I suggest digging up his blog posts about it. You could start here

He has attorney-friends who comment on blog posts. You might glean further insight there. The Volokh Conspiracy, a cabal of blogging law professors, is also a good source for this sort of thing.

No, I am not a paid endorser, spammer, shill or what-have-you. Felix can vouch for my lack of affiliation with any organization, nor advocacy of anyone, other than Franklin Delano Roosevelt and the Internet Archive.

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By: realist50 http://blogs.reuters.com/felix-salmon/2013/07/11/when-hedge-funds-go-online/comment-page-1/#comment-47660 Wed, 17 Jul 2013 15:09:41 +0000 https://blogs.reuters.com/felix-salmon/?p=22241#comment-47660 @linda53 – no, it is actually the opposite. Under current rules, investors self-certify that they are accredited investors. Under the new rules, issuers need to take “reasonable steps” – presumably looking at investors’ tax returns to verify income or investors’ financial statements of some sort to verify net worth. I believe that the current rules still apply if issuers do not solicit generally, which is another reason not to solicit generally.

Angel investors have already expressed opposition to having to provide financial information to issuers – http://www.pehub.com/2013/07/16/angel-gr oup-displeased-new-sec-rules/ . I sympathize with their position, as I wouldn’t want to have to provide my complete personal financial information to an issuer just so that I can make an investment.

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By: Kaleberg http://blogs.reuters.com/felix-salmon/2013/07/11/when-hedge-funds-go-online/comment-page-1/#comment-47658 Wed, 17 Jul 2013 02:44:09 +0000 https://blogs.reuters.com/felix-salmon/?p=22241#comment-47658 Basically, the hedge fund operators are running out of suckers and need to recruit more. There’s a billboard east of town here that is a perfect harbinger for when to get out of an asset. In 1999 it was pushing stock ownership. In 2006 it was pushing real estate as an investment. I expect some hedge fund reseller to post up there any day now.

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By: linda53 http://blogs.reuters.com/felix-salmon/2013/07/11/when-hedge-funds-go-online/comment-page-1/#comment-47638 Fri, 12 Jul 2013 17:45:49 +0000 https://blogs.reuters.com/felix-salmon/?p=22241#comment-47638 One of the problems with the new rule is that it allows potential investors to self-certify that they meet the accredited investor standard. There’s a lot of potential for abuse there.

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By: BLNR http://blogs.reuters.com/felix-salmon/2013/07/11/when-hedge-funds-go-online/comment-page-1/#comment-47637 Fri, 12 Jul 2013 17:40:26 +0000 https://blogs.reuters.com/felix-salmon/?p=22241#comment-47637 1)This isn’t just about hedge funds. It is also about start-ups.
2)You don’t have to have a million dollars to invest. You just have to have $200,000 in income.
3) General solicitation isn’t necessarily transparent. It can take forms (email, phone solicitation, letters) that aren’t at all transparent.
4) None of this explains why the SEC couldn’t have done a balanced rule that benefited issuers and investors alike.

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By: realist50 http://blogs.reuters.com/felix-salmon/2013/07/11/when-hedge-funds-go-online/comment-page-1/#comment-47634 Fri, 12 Jul 2013 04:58:17 +0000 https://blogs.reuters.com/felix-salmon/?p=22241#comment-47634 I don’t agree that having a website with information that would be considered a “general solicitation” will become the expected norm. Per Dan Primack’s column from yesterday on the topic –
http://finance.fortune.cnn.com/2013/07/1 0/sec-votes-to-let-hedge-funds-advertise  /?iid=SF_TS_Lead – there are additional verification and filing requirements for any firm that engages in general solicitation. (Items 2, 3, and 4 on Dan’s list.) My read is that a firm is only subject to these requirements if it solicits, so there’s still an incentive not to do so.

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By: crocodilechuck http://blogs.reuters.com/felix-salmon/2013/07/11/when-hedge-funds-go-online/comment-page-1/#comment-47632 Thu, 11 Jul 2013 21:26:37 +0000 https://blogs.reuters.com/felix-salmon/?p=22241#comment-47632 Hedge funds on Twitter, eh, Felix?

Allow me to suggest something even more important for investors to appreciate:

Mean reversion.

http://www.businessweek.com/articles/201 3-07-11/why-hedge-funds-glory-days-may-b e-gone-for-good#p1

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