WEST PALM BEACH, FL (HedgeCo.Net) – The Rye, New York based Gabelli Asset Management Inc. has been subpoenaed by the US Securities and Exchange Commission. According to news reports the subpoena isrelated to the unending improper trading of 2003. The asset manager said previously that one of its clients was allowed to engage in short-term trading in one of its mutual fund products, while otherinvestors have been banned from conducting such activities.
Gabelli�s attorney said the subpoena was just a “follow-up from the information request” made in 2003. The SEC traditional does not comment in such pending investigations. According to published reports, Gabelli had no rules limiting short-term trading activities prior to May 2003. The company has since instituted a provision charging a 2% fee on trading activities initiated and closed in under 60 days.
The firm has since instituted some prohibitions against market timing, despite the fact that such strategies are not illegal. Gabelli Asset Management oversees over $27 billion in investor assets, and of such total about $12 billion are in mutual fund portfolios.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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