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89 ViewsCan hedge funds be a holding company (controlling company)?
is there a limit on the stock percentage of a company hedge funds can own? or there is a limit of the hedge funds AUM that can be invested in only one company? I mean it is mandatory by law or it relies on the strategy of the fund and managers are free to choose.
Asked on February 12, 2012 at 12h:12 pm
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March 27, 2012 at 11:26 pm
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Technically, I do not believe there is a legal prohibition on owning above a certain percentage. However, ownership of above 5% generally requires that the fund/manager make certain filings with the SEC, and ownership above 10% may require the disgorgement of short swing profits. These rules are complicated and other provisions may apply. You should discuss them with counsel.