The man who brought down the hedge fund manager registration requirement is now seeking a waiver from rules requiring funds with over $100 million to disclose their stock holdings. His argument is pretty simple. First, disclosure allows others to benefit from his work finding investment opportunities. This is basically an unconstitutional taking of his intellectual property, Goldstein argues. Second, the requirements are useless—the SEC isn’t doing anything useful with the information. Third, the goal of “investor confidence” might actually be dangerous, creating an unwarranted overconfidence in investors and deterring them from doing proper due diligence.
The best part of the interview with Business Week is when Goldstein quotes PJ O’Rourke.
If you saw my 13F filing, as a member of the public, how does that help you? It's not legitimate for you to say, Phil Goldstein, he's a pretty smart guy, I see he's buying XYZ, I'm going to buy some. That's stealing. P.J. O'Rourke had a great line in Parliament of Whores: "If enough people get together and act in concert, they can take something and not pay for it."
Do Hedge Funds Hold 'Trade Secrets'? [Business Week]