Hedge Fund Sues Mass. Over Restrictions on Web Posting

Philip Goldstein, one of the principals of Bulldog Investors hedge fund, succeeded last year in overturning the hedge fund registration rule. He also is challenging a Securities and Exchange Commission rule that would require it to disclose its holdings every quarter, citing theft of intellectual property.

Now Goldstein is taking on Massachusetts securities regulators, The Wall Street Journal reports.

Goldstein has sued the state, charging it with infringing on his First Amendment free speech rights. The suit seeks an injunction against the state.

In January, the state said Goldstein improperly solicited inquiries about his hedge fund on his website; unregistered hedge funds are not allowed to solicit customers by offering their investment opportunities to the public.

Goldstein called the advertising restrictions “silly” since regulations allow only accredited investors to place their money in hedge funds.