Posts tagged ‘insider trading’

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Short-Swing Profiteers

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.

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Private Funds Need Bolder Boards

The days of ‘rubber-stamping’ Cayman directors are over

If “carried interest” is not enough to fret about, US private equity and hedge fund managers now face the unwelcome prospect of “independent” boards.

The model of a couple of professional Cayman Islands directors performing a perfunctory oversight role no longer cuts the mustard.

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The First Ten Days of an Activist Campaign

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.

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The Root of All Evil

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.”

I’d say just the opposite.

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The David Einhorn Affair

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.

Rx for Expert Networks

What hedge funds can do to minimize insider trading risk

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.