Billionaire hedge funders play poker over an activist target
At an investor conference last December, hedge fund activist Bill Ackman spent 3½ hours explaining why Herbalife, the 33-year-old direct marketer of nutritional supplements, was nothing more than a Ponzi scheme whose stock was worthless.
Should the current reporting window for 5% equity stakes be closed?
Whenever a hedge fund activist like Bill Ackman, David Einhorn or Dan Loeb picks a company to attack, he quietly amasses 5% of the target’s stock and isn’t required to notify management or the marketplace of his substantial stake or mutinous intentions for 10 days.
Defanging the bonus system without ruining Wall Street
Preet Bhahara, the U.S. attorney whose office convicted Rajat Gupta, Raj Rajaratnam and 62 others for insider trading, recently told a hedge fund audience that these cases have given the public “more confidence in the market.”
Would the outspoken hedge fund activist really have been free to trade in the U.S.?
As a securities attorney, I am baffled by the news reports on hedge fund manager David Einhorn’s insider trading run-in with the U.K.’s Financial Services Authority (FSA), which Einhorn just settled for $11.2 million.
Funds that use expert networks to provide their research analysts with specialized company and industry intelligence constantly face the risk that some of the information so obtained is both material and non-public and cannot therefore be used in trading.