Galvin subpoenas Guidepoint Global
Secretary of State William F. Galvin has subpoenaed the consulting firm Guidepoint Global in connection with its dealings with a Massachusetts hedge fund, amid a widening federal probe into insider trading by hedge funds and firms that provide them with research.
The state delivered a subpoena on Monday to the Boston office of Guidepoint, which is based in New York. The state said it learned of the contractual relationship between Guidepoint and a small Massachusetts-based hedge fund, which it declined to name, during a routine examination of the fund in May.
Galvin cited US Attorney General Eric Holder's comments Monday, confirming a sweeping federal investigation into so-called expert consultants and their possible role in insider trading at large hedge funds and mutual fund firms.
“The recent pronouncement about the role of expert consultants and hedge funds is extremely troubling,” Secretary Galvin said, “and it is the responsibility of my office as sole regulator of small state-registered hedge fund to fully explore and investigate the role these firms play with these state registered entities.”
Galvin's investigation involves a small hedge fund with less than $20 million in assets, he said. The inquiry does not involve Loch Capital Management, a Boston hedge fund that was raided by the FBI last week, along with two other hedge fund firms' offices in Connecticut and New York.
Guidepoint Global did not return a call seeking comment. The firm was recently mentioned in press reports, after a French doctor who worked there was charged in New York by the US Attorney's office and the Securities and Exchange Commission with providing confidential information about a clinical drug trial to a hedge fund. Guidepoint was not named in the complaint or charged with any wrongdoing.