In The Wall Street Journal, Financial News and Law360, Hedge Fund Team Leader Laurel FitzPatrick Discusses SEC Proposed 13F Updates

In The News
July 16, 2020

An article published by The Wall Street Journal on July 10 titled “SEC Rule Proposal Would Slash Number of Investment Managers That Need to Report Quarterly Holdingsreports on the SEC’s proposals to amend Form 13F. The amendments would update the reporting threshold for institutional investment managers and make other targeted changes. The threshold has not been adjusted since the Commission adopted Form 13F over 40 years ago and would sharply raise the size threshold of funds required to report their U.S. stockholdings quarterly. The move would end such disclosures for nearly 90% of current filers, including many hedge funds and mutual-fund firms. 

In the article, asset management partner and hedge funds team leader Laurel FitzPatrick outlines the pros and cons of this for smaller managers.  “For a manager under $3.5 billion, it could provide them more time to build positions so they’ll be less visible,” said Laurel. “But it also might make it more difficult for them to ascertain other, smaller investors that might be supportive of changes they’d like to make.” The article was featured in the WSJ print edition, as well as Financial News

Laurel also discussed the proposals in a July 13 Law360 article titled SEC Plan To Ax Disclosures Seen As Boon For Smaller Funds.” Laurel notes in the article the possibility of “some debate regarding whether the $3.5 billion is too high, as that would exclude some fairly influential managers." She noted that the elimination of the form could allow firms to keep their positions confidential longer, letting them avoid copycatting. However, she questioned the desire of firms to copy the investments of smaller managers, adding that the form is not a heavy lift for most managers. 

The proposal will be published on the Commission’s website and in the Federal Register. There will be a 60-day comment period following publication in the Federal Register.