Following the SEC’s rescission of its decades-old “gag rule,” Deccan exercises its restored right to publicly contest allegations it never admitted

Deccan Value Investors LP (“Deccan” or “the Firm”) today categorically rejects findings set out in the U.S. Securities and Exchange Commission’s August 3, 2022 settled order (the “Order”) suggesting that it acted negligently in handling redemptions requested by two clients in breach of fiduciary duty. Deccan believed then, and maintains today, that it acted lawfully, in good faith, and consistent with its fiduciary obligations to all its investors in connection with those redemptions.

At the time of the Order, Deccan was barred from commenting publicly on the filings. Under the SEC’s former “no-deny” policy (Rule 202.5(e)), every party that settled with the agency was forced to surrender its right to dispute the allegations against it as a condition of resolution. On May 18, 2026, the Commission rescinded that policy and Deccan now exercises the right it was previously denied. The Firm wants to state the following categorically about the SEC Order, which contains language that is open to misinterpretation:

1. The Order’s key findings second-guess professional judgments that Deccan believes were reasonable and consistent with its fiduciary duties. In particular, Deccan believes it was reasonable and lawful for Deccan to sell illiquid assets of a redeeming client at a rate of 5% of average daily volume to prevent adverse price effects; offer to purchase thinly traded assets from a redeeming client on behalf of non-redeeming clients at a discount to account for illiquidity and protect non-redeeming clients; and redeem a client’s interest in an illiquid position at the fair market price determined by a third party valuation expert, rather than a bid price that was conditional and highly uncertain.
2. The redeeming clients received their capital in full within months of requesting redemption.
3. The Order did not allege that Deccan improperly benefited from any actions, nor did it allege that Deccan or Bodas acted with bad faith or fraudulent intent.
4. No Deccan investors made any claims against the Firm.
5. The Order did not require Deccan or its principal, Vinit Bodas, to pay any disgorgement or restitution to investors.
6. Deccan and Bodas agreed to the moderate civil penalties called for by the Order to avoid greater legal expenses and distractions from operating its business.
7. Deccan’s longest tenured endowment and foundation clients did not redeem and remain the Firm’s clients today.
8. Deccan has delivered outstanding long-term investment results to its clients.

Where Deccan Stands Today

Deccan continues to manage capital for some of the most sophisticated institutional investors in the world — clients who conducted their own diligence and chose to remain with the Firm. Deccan has further strengthened its compliance infrastructure, and retained independent expertise. The Firm reaffirmed the disciplined, long-term investment philosophy that has defined it, and is very proud of its record and confident in its people.

A spokesperson for Deccan Value Investors said, “The truth is that we settled with the SEC in 2022 to move forward despite multiple disagreements with several points in its Order. For years, we were prohibited from publicly defending ourselves, but that is no longer the case given the SEC’s recognition that firms in our position have every right to state their position. We are pleased to finally have the opportunity to share our unwavering perspective that we acted in good faith, in the interests of all our clients, and within the authority those clients gave us.”

About Deccan Value Investors LP

Deccan Value Investors LP is a Greenwich, Connecticut-based investment adviser registered with the U.S. Securities and Exchange Commission. Founded by Vinit Bodas, the Firm pursues a long-term, concentrated, research-driven, fundamental value investing strategy on behalf of leading institutional clients, including major university endowments.

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