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TheSecurities and Exchange Commission requires hedge funds and mutual funds with more than $100 million in equity assets to disclose their holdings every three months, but hedge fund manager Philip Goldstein thinks the practice should stop, according to Forbes. Goldstein runs a couple of hedge funds that recently topped $100 million market in assets under management. He is petitioning the SEC to get exempted from the disclosure law. His argument being that his investments are his intellectual property—trade secrets that the SEC should not force him to reveal. It will be a tough battle for Goldstein, as the SEC is trying to get tougher with the $2 trillion hedge fund industry. However, he did win a high-profile suit to stop a rule that would have required hedge funds with more than $25 million in assets to register as investment advisors. In 1975 Congress passed the 13F disclosure rule, when many regulators had become wary about the impact of institutional mangers on the market. Goldstein argues the SEC has made virtually no use of the disclosures, yet says newsletters and others urge investors to parse fund holdings to “steal” ideas for stock picking. “All the evidence indicates that 13F filings are used by the public for only one reason: to obtain, without compensation, the trade secrets of successful filers,” he wrote. Goldstein fully expects the SEC to turn him down, in which case he will proceed to court, he said. He finances such litigation with his and his partner’s money, having spent nearly $300,000 overturning the hedge fund rule. The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

Commission sharing agreements mark big trading houses’ newest attempt to win mutual fund companies’ business, while offering the array of research they seek, according to The Wall Street Journal. In response to an increasing demand for more transparent costs and unbundling of fees, commission sharing agreements to fund companies allow mutual fund managers to simply tell traders what research they want, and how much to pay for it. The brokerage house then pays for the research out of their trading commissions. The idea is to stop mutual fund companies from partnering with scores of separate brokerages, thereby concentrating their lucrative trading business. In the past, when one fee bought both trade execution and research, mutual funds would contract with as many as 100 different trading houses to ensure getting the widest possible array of? research. “The biggest ‘pro’ is that you can trade with firms that are great trading firms and obtain great research from great research firms—you don’t necessarily have to mix those things together,” said Richard Whitney, fund manager and head of the committee overseeing commission allocation at T. Rowe Price in Baltimore. For investors such arrangements could mean a clearer breakdown of costs. Oppenheimer Funds has hammered out roughly 36 such arrangements with their trading partners, including industry titans, such as Bear Stearns, Lehman Brothers, UBS, and Merrill Lynch. Jay Bennett, a consultant at Greenwich Associates, a consulting firm in Greenwich, Conn., said his company expects such agreements to continue to gain popularity. But not everyone agrees they work well. “I no longer have a financial arrangement with my client,” said Lisa Shalett, head of research at Sanford C. Bernstein. “I now become dependent for my revenue on my competitor.” Smaller brokers will also be especially challenged, said Bennett. Fund executives also worry that if large companies reap a greater share of their business, trading patterns may emerge, and brokers could then share those patterns with competing funds. Goldman Sachs has been allowing such arrangements since 2004, and Boston-based Fidelity has been using them since the mid 1990s. Fidelity still used these arrangements in part, but drew special attention last year when it announced that the company, not shareholders, would pay separately for research. This summer, the Securities and Exchange Commission sanctified commission-sharing agreements formally in a report on the use of so-called soft-dollars. “We recognize the benefit to investors of money managers being able to …separate the trade execution from access to valuable research,” the federal agency said. The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

Placemark Investments has increased assets to $4 billion, a 100% gain in seven months driven by sales of its unified managed account platform.

Eaton Vance Corp. has hired Daniel McCarthy and M. Katherine Kasper for its institutional group.

Baby Boomers will donate an average of $6,000 this year, 20% more than the $5,000 people of all ages have pledged, a survey by the Fidelity Charitable Gift Fund found.

Stricter capital requirements in Japan for banks may limit the amount of money they can invest in hedge funds, the International Herald Tribune reports.

Robert Gates, the new U.S. defense secretary, was chairman of a group of independent trustees at Fidelity Investments investigating $2 million worth of gifts from Jefferies & Co. between 2002 and 2004, the International Herald Tribune reports.

U.S. households are 5.8% wealthier than they were this time a year ago, according to the Federal Reserve quarterly flow data released Thursday, Dow Jones reports. Analysts credited capital gains and stock market wealth for the boost.

Charles Schwab is considering using the proceeds from the sale of its U.S. Trust division to acquire another company, possibly a 401(k) provider, Global Banking News reports.

The proposed merger between Mellon Financial and The Bank of New York will create a money management powerhouse, with the resulting firm having global reach into both the retail and institutional markets, Dow Jones reports.

Mellon Financial has agreed to sell its Mellon HBV Alternative Strategies to Mickey Harley, the New York unit's chief executive officer.

The gap between wealthy and poor is widening, according to a new report by the World Institute for Development Economics Research at United Nations University.

Top regulators testified before the Senate Judiciary Committee on Tuesday that they are concerned about insider trading and a lack of transparency among hedge funds.

The majority of 401(k) investors are reluctant to review or actively manage their plan, a survey of 1,000 people by AllianceBernstein found.

Although they believe they are making correct 401(k) investment choices, a majority of investors fear that they won’t have enough savings to last them throughout their retirement years, according to a survey by New York Life Investment Management.

Pointing out how exchange-traded funds encourage short-term trading and are increasingly focusing on narrow sectors of the market, Vanguard founder John Bogle is again railing against the increasingly popular investment vehicles, Bloomberg reports.

Gutride Safier has filed a class-action lawsuit against Franklin Templeton in the United States District Court for the Northern District of California.

The merger between Mellon Financial and the Bank of New York is likely to spur additional mergers and acquisitions, analysts tell Reuters.

The Securities and Exchange Commission has announced possible topics for its ongoing CCOutreach seminars across the country next year, among them examinations, risk assessment and brokerage arrangements.

The federal government began requiring mutual funds last month to look out for and report suspicious customer activity, The Baltimore Sun reports. Looking to ferret out tax evaders, drug dealers, mobsters, gamblers and terrorists, the government requires firms to file suspicious activity reports (SARs).