We’ve always maintained that the mark of a good hedge fund manger is his willingness trash talk, call someone out on being an “ass,” and invoke the First Amendment. Which is why when it came time to revise our laminated “list” of hedgies, Philip Goldstein, Bulldog Investments mangager, figured prominently in the top three (little known fact: the depths of George Soros’s filthy mouth are rivaled only by his ability to expound for hours-- hours!-- about his right to “petition the Government for a redress of grievances”).
Recently, our rankings were confirmed when Goldstein, best known for helping overturn the requirement for hedge fund managers to register with the S.E.C. as investment advisers, felt he and his company were the target of a “sting operation” waged by Newton, Mass.-based money management firm, RMR Advisors (currently embroiled in a lawsuit with Bulldog) and Massachusetts Secretary of the Commonwealth, William Galvin. It is Goldstein’s contention that the two parties were in cahoots with Brendan Hickey, a non-accredited investor resident of Quincy, Mass., to register with Goldstein’s site, which RMR then turned over to the state. According to Galvin’s office, Hickey was privy to “information related to alternative investments via Mr. Goldstein’s website…without being screen for qualifications.” Goldstein’s (melodic) response?
“I’m not going to let some pompous ass sitting in Boston tell me I can’t talk to somebody or give somebody information when they ask for it,” he said. “This is not really about hedge funds; it’s about the First Amendment, and I think Galvin is just trying to get a trophy.”
“Providing information is not the same as selling something, and this is still a free country, and that includes Massachusetts,” Mr. Goldstein said. “What’s the big deal? We’re not planning a kidnapping here.”
Don’t even try and pretend that doesn’t make your heart go pitter-patter.
Mass. hedge fund scrutiny called a ‘sting operation’ [Investment News]