Reddit GameStop Frenzy Should Spur Board Talks with Adviser, PMs
Blank Rome Partner Stacy H. Louizos, who serves as Co-Chair of the Firm’s Investment Management group, is featured in Fund Board Views, a premier resource for mutual fund directors. In her commentary, Stacy discussed what fund directors should be doing in the aftermath of the GameStop frenzy that enveloped the financial markets last week.
Stacy maintained that the level of urgency for a particular fund board will depend on the holdings among the funds they oversee and the strategies those funds employ, given the specificity of the GameStop situation. She suggested that boards follow up with respect to whether the situation impacted the funds they oversee as well as have a discussion about the extent to which short sales are employed. Stacy added that a “board might also want to ask to confirm disclosures are up to date as to volatility risk in general and, if applicable, risks relating to short sales.”
To read Stacy’s full commentary, please click here.