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Could Your Stellar Returns Trigger an SEC “Aberrational Performance Inquiry”?

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The SEC first mentioned its “Aberrational Performance Inquiry” initiative back in 2011. Under the initiative, the SEC uses proprietary risk analytics to evaluate hedge fund returns. Performance that appears inconsistent with a fund’s investment strategy or other benchmarks forms a basis for further scrutiny. Per our prior post, it has now produced seven SEC enforcement actions.


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Published In: Finance & Banking Updates, Franchise Law Updates, Intellectual Property Updates, Labor & Employment Law Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Bettina Eckerle, B.E. Compliance, LLC | Attorney Advertising

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