The SEC wants to ensure that retail investors don't get the
short end, but some evidence suggests they do
Sometimes trades that seem ordinary can prompt
Paul Wick, a managing director at money manager J. W. Seligman,
to drop what he's doing and fire off a memo to the firm's
compliance department. Wick wrote one such memo this spring
after emptying Seligman Tech Spectrum, the hedge fund he
manages, of its Oracle holdings while he only sold half of the
Oracle position at Seligman Communication & Information, a
mutual fund he also runs.
The trades were routine, Wick says, but the fact that both
funds are under his watch and have very different compensation
schemes means that many of his moves are automatically suspect
to regulators. "Every time we sell out of something in its
entirety [in the hedge fund] and don't do it in the mutual
fund, I have to...