Some newly registered U.S. hedge fund advisers are "cherry-picking" investments to showcase their performance and improperly changing how they value securities, an agency official said on Monday. Andrew Bowden, head of the SEC's Office of Compliance, Inspections and Examinations, revealed preliminary findings to an audience of compliance professionals as the agency reaches the tail end of a two-year effort to examine newly registered hedge fund and private equity fund advisers. The affected advisers, each managing more than $100 million in assets, registered with the SEC in accordance with the 2010 Dodd Frank financial reform law. Hedge fund advisers, in some cases, are showcasing performance of specific investments they made in prior years, a in violation of SEC regulations prohibiting cherry-picking, the report said. Advertising rules can be tricky for those new to SEC regulation, Bowden said in Philadelphia at a conference organized by IA Watch, a trade publication. "If you’ve
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