SEC charges advisory firm Mass Ave Global and CEO Winston Feng with false statements and undisclosed conflicts

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The Securities and Exchange Commission instituted settled proceedings against formerly registered investment adviser Mass Ave Global Inc. (MassAve) and its co-founder and CEO Winston M. Feng for making false and misleading statements to investors in MassAve’s flagship opportunity fund. To settle the SEC’s charges, MassAve agreed to pay a civil penalty of $350,000, and Feng agreed to pay a civil penalty of $250,000. In addition, Feng, who is also the chief investment officer and portfolio manager at MassAve, is suspended for 12 months from industry-related work. Here is the Order on Mass Ave: https://www.sec.gov/files/litigation/admin/2024/ia-6615.pdf

According to the SEC’s orders, from 2020 to 2022, New York City-based MassAve, an investment adviser that made Asia-focused investments and that held more than $1 billion in regulatory assets under management, made a series of materially false and misleading statements about its flagship opportunity fund’s holdings and exposures. The orders found that some of the false statements were the result of modifications Feng made to underlying portfolio data, which MassAve then included in investor communications, such as its monthly tear sheets, summary portfolio snapshots, and top 10 position lists. In addition, according to the SEC’s orders, from late 2022 to early 2023, MassAve did not report to its investors a conflict of interest arising from MassAve’s other co-founder operating a separate hedge fund in China. The SEC’s order against MassAve also found failures in the firm’s compliance policies and procedures.

According to the SEC’s orders, in January 2023, MassAve reported to investors that its communications about the flagship fund were inaccurate and did not contain appropriate disclosures. Soon thereafter, MassAve received a wave of redemption requests and has since been winding down operations.

The SEC’s orders found that MassAve violated the antifraud and compliance provisions of the Investment Advisers Act of 1940 and that Feng violated the antifraud provisions of the Advisers Act. Without admitting or denying the SEC’s findings, MassAve and Feng consented to the entry of the SEC’s orders requiring them to cease and desist from further violations, censuring MassAve, and imposing the penalties listed above.

MassAve Global is a New York-based hedge fund and investment management firm. Here are the key details about the company:

Founded in Q4 2019 and based in New York City

  • Co-founded by Winston Feng (CEO) and Yirui Guo
  • Pursues a long-term, fundamental investment strategy focused on public and mature private companies in sectors like technology, consumer, healthcare, and industrials
  • Positions itself as providing strategic resources and acting as a long-term capital partner to innovative companies

  • Had $1.1 billion in assets under management as of March 2023
  • Operated China and Asia-focused funds which it liquidated in March 2023 due to geopolitical tensions and regulatory challenges in China
  • Takes an active investment approach by investing in visionary companies and founders

  • In May 2024, MassAve Global was fined $350,000 by regulators for compliance and communication lapses
  • CEO Winston Feng agreed to pay $250,000 and was suspended from investment work for 12 months related to the compliance issues

  • Small firm with 2-10 employees as per LinkedIn
  • Office located at 600 5th Avenue, Floor 2, New York, NY 10020

Winston Feng is the co-founder and CEO of MassAve Global, Inc., a New York-based hedge fund and investment management firm he founded in 2019.

  • Prior to founding MassAve Global, Feng worked as an Investment Analyst at S.A.C., a hedge fund firm
  • He specialized in technology, media and telecommunications sectors while working as an analyst
  • Feng has experience from previous roles at Loft Capital Management

  • As the CEO of MassAve Global, Feng pursues a long-term, fundamental investment strategy focused on public and mature private companies
  • The firm positions itself as providing strategic resources and acting as a long-term capital partner to innovative companies
  • Under Feng’s leadership, MassAve Global had $1.1 billion in assets under management as of March 2023 but liquidated its China/Asia funds due to challenges

Jeffrey Newman is a whistleblower lawyer, whose firm represents whistleblowers in healthcare fraud cases under the False Claims Act (FCA) and also under the Securities and Exchange, FINCEN and CFTC whistleblower programs. He can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217