{"id":69873,"date":"2019-06-28T02:29:56","date_gmt":"2019-06-28T06:29:56","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=69873"},"modified":"2019-06-28T02:29:56","modified_gmt":"2019-06-28T06:29:56","slug":"sec-fines-hedge-fund-5-million-over-undervaluation-of-assets","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/06\/2019\/sec-fines-hedge-fund-5-million-over-undervaluation-of-assets.html","title":{"rendered":"SEC fines hedge fund $5 million over undervaluation of assets"},"content":{"rendered":"<p>\n(Opalesque) A recent action where the SEC focused on the presumably conservative undervaluation of assets suggests that it is more than willing to use valuation as a hook to deter &#8220;smoothing&#8221; of returns. As we previously noted, while the SEC consistently announces that valuation is a &#8220;key area of focus,&#8221; it is uncommon for regulators to second guess valuation determinations in the absence of other potential violations. However, failure to adhere to stated valuation policies\/procedures is one situation that may lead to heightened regulatory exposure and disputes.<\/p>\n<p>Earlier this month, the SEC announced a settled action against Deer Park Road Management Company, LP, a hedge fund that focuses on distressed securities (in particular, pre-2008 residential mortgage-backed securities). The SEC&#8217;s order focused on two technical violations:<\/p>\n<p><a href=\"https:\/\/www.opalesque.com\/674122\/SEC_fines_hedge_fund_million_over_undervaluation412.html\">To read this article:<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Opalesque) A recent action where the SEC focused on the presumably conservative undervaluation of assets suggests that it is more than willing to use valuation as a hook to deter &#8220;smoothing&#8221; of returns. As we previously noted, while the SEC [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-69873","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/69873","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=69873"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/69873\/revisions"}],"predecessor-version":[{"id":69874,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/69873\/revisions\/69874"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=69873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=69873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=69873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}