If an investment adviser is bidding competitively, and . . . | Then . . . |
(1) the investment adviser has a net long position for its own account | that position must be included in the investment adviser's net long position calculation. |
(2) the investment adviser's competitive bid is for a controlled account | any net long position of that account must be included in the investment adviser's net long position calculation. |
(3) the investment adviser is not bidding competitively for a controlled account and . . . | |
(i) the controlled account has a net long position of $100 million or more | that position must be included in the investment adviser's net long position calculation. |
(ii) the controlled account has a net long position that is less than $100 million | that position may be excluded from the investment adviser's net long position calculation. |
(iii) any net long position is excluded under paragraph (b)(3)(ii) of this table | all net short positions of controlled accounts under $100 million must also be excluded. |