Our lawyers have successfully represented hedge funds in affirmative and defensive litigation in state and federal courts, including securities and derivative actions, partnership disputes, and common law fraud and breach of contract matters. We also have represented funds facing threatened or actual litigation on issues arising from distressed debt investments and lender liability issues.
In 2019, we expect the SEC to continue to focus on fee and expense disclosure and the allocation of expenses and investment opportunities at private equity funds and hedge funds. We think the Commission will review funds’ use of affiliated service providers and products and similar conflicts of interest in examinations. We further anticipate that the SEC will continue its focus on cybersecurity with an emphasis on ensuring that private funds’ cybersecurity policies and procedures are both sufficient and being followed, and that such funds have conducted a cybersecurity “risk inventory.” Finally, it is our view that the Commission will continue to monitor digital assets (including regulatory compliance where such assets are “securities”), focusing on areas such as portfolio management and trading, safety of client assets, pricing of client assets, and compliance and internal controls.