SEC Finds Misrepresentations by Hedge Funds, Bowden Says
 

SEC Finds Misrepresentations by Hedge Funds, Bowden Says

Some hedge funds misrepresent their performance in advertising and marketing materials and fail to follow their own procedures for valuing investments, a top U.S. Securities and Exchange Commission official said today.

SEC reviews completed as part of a two-year effort involving nearly 200 funds have found cases where potential investors were given only the most favorable description of past performance rather than full disclosure of winning and losing bets, SEC Compliance and Examinations Director Drew Bowden said in a speech at a conference in Philadelphia. Read more on Bloomberg.