The Securities and Exchange Commission has ordered Twenty Acre Capital LP to pay a $100,000 civil money penalty for misleading performance advertising of a private fund it advised.
From at least November 2021 through February 2023, when advertising to prospective investors the performance of the fund, Twenty Acre, an RIA based in Pennsylvania, "presented performance returns that were experienced by a single investor," the SEC order states.
"These returns did not constitute fund performance, and Twenty Acre's advertisements did not disclose that this investor's performance, at times, differed substantially from, and was significantly higher than, the overall performance of the fund and the returns achieved by other investors in the fund due to investment restrictions," the SEC said.
In its Form ADV Part 1A filed on March 28, Twenty Acre reported that it had approximately $180.7 million in regulatory assets under management.
Twenty Acre launched the fund in November 2019, pursuing a strategy focused on the technology sector.
Twenty Acre Global Master Fund LP is a hedge fund that invests predominantly in publicly traded equities. The fund's investors, according to the order, "include a variety of entities and individuals, several of whom are or were restricted from purchasing securities in initial public offerings by rules" of the Financial Industry Regulatory Authority.
From at least November 2021 through February 2023, Twenty Acre disseminated advertisements to prospective investors in the fund in the form of pitch decks and fact sheets.
