The U.S. Securities and Exchange Commission has in recent months broadened the scope of its inquiry into hedge fund involvement in private investments in public companies, or PIPEs.
The Commission early last year began making inquiries into the practice at hedge funds that specialize in the investments, known as PIPEs. Such funds include Lawrence Goldfarb's BayStar Capital. But, during the last few months, investigators have also begun contacting the industry's largest multi-strategy funds, many of which include PIPEs among their strategies.
Big multi-strategy funds that utilize PIPEs - which are themselves perfectly legal - include HBK Investment and Ramius