SEC Action Brings Lessons for Quantitative Fund Managers

On Aug. 27, 2018, the U.S. Securities and Exchange Commission announced settlements with a U.S.-based registered investment adviser, several of its affiliates and two of its executives for alleged misconduct involving quantitative investment models that contained numerous errors. In this article, partner Anna Maleva-Otto and former Schulte lawyer Brian Daly discuss steps for private hedge fund managers to consider moving forward in light of these settlements.