The Securities and Exchange Commission on Tuesday sanctioned a hedge fund investment adviser for failing to adopt and implement compliance policies over valuing fund assets, disclosing its valuation practices, and managing cross trades between clients. The SEC accepted an offer by the adviser, Agamas Capital Management, LP, in which the firm, without admitting or denying the SEC's findings, consented to being censured, fined $250,000, and ordered to cease and desist from violating Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-7. Agamas withdrew its adviser registration in December 2009 and wound down its operations. The SEC found that Agamas, at its peak, managed almost $900 million in assets through a hedge fund and a separately managed account ("SMA") designed to emulate the fund's risk and asset profile and performance. The fund traded in, among other things, securities whose prices were non-widely quoted in the market. To price these securities, Agamas
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