Browsing: insider trading

Posts Tagged ‘ insider trading ’

What Hedge Funds Do When the Lights Go Out

Aug 13th, 2019 | Filed under: Newly Added, CAPM / Alpha Theory, The A.I. Industry, Equity Hedge Funds, Financial Economics Theory, Hedge Funds, Finance & Economics

A new paper looks at how hedge funds adjust their information acquisition and trading behavior as analyst coverage changes—and more specifically, when certain stocks cease to be covered by certain analysts. These authors considered the hypothesis that, faced with a murkier environment, hedge funds might become more cautious, reducing theirRead More


SCOTUS Leaves a Big Pharma Insider-Trading Conviction Intact

Jun 6th, 2019 | Filed under: Newly Added, The A.I. Industry, Regulatory, Regulatory Environment, Hedge Funds, Legislation/Court rulings

On June 3, the US Supreme Court denied certiorari in the matter of Martoma v. US. This is the end of the line, then, for the appeals of Mathew Martoma’s criminal conviction and sentence. Martoma is a former portfolio manager for SAC Capital, now known as Point72 Asset Management. HeRead More


Back to the 1980s for future market insights

Sep 6th, 2018 | Filed under: Newly Added, The A.I. Industry, Business News, Economics, Finance & Economics, Other Topics in A.I.

Christina Zhu, of the University of Pennsylvania, in a recent paper, looks at the consequences of Big Data for corporate management. What “Big Data” means depends on who is talking or writing about it. For economists working within the classic microeconomic framework, it means a drastic fall in the cost of acquiring information.Read More


Insider Trading: Big-mouth Bankers and Remote Tippees

Jan 26th, 2016 | Filed under: Newly Added, The A.I. Industry, Regulatory Environment, Legislation/Court rulings

The US Supreme Court has accepted an appeal from a Ninth Circuit decision on insider trading. Whatever the Justices do with this case, they will surely shed some light on the future of this sometimes very confusing body of law. Specifically: on January 19, the high court granted cert onRead More


Administration, via Verrelli, Rolls the Dice on Insider Trading Issue

Aug 31st, 2015 | Filed under: Hedge Fund Strategies, Alpha Hunters, Legislation/Court rulings

Not all benefits are as tangible as a suitcase of cash, and the question of law for the Second Circuit, for the Ninth, and now perhaps for SCOTUS is: is friendship enough? how about regard for one's brother? Read More


Thoughts about Latest Insider-Trading Scandal

Oct 30th, 2014 | Filed under: Media Coverage of Hedge Funds

The story on the front page of The Wall Street Journal, about the Dendreon/Provenge investigations, focuses on trading in Dendreon stock over a three week period, beginning with the date of an e-mail sent out on June 7th, 2010. Read More


Rajaratnam Prosecution Sends a Signal: Traders Notice

Jun 25th, 2013 | Filed under: Hedge Fund Industry Trends, Risk management, Legislation/Court rulings

The arrest of Rajaratnam almost four years ago and the subsequent anti-insider enforcement activity doesn't of course come as news. But it raises fascinating questions about consequences: what have been the consequences amongst traders? Read More


The Second Circuit: Jury Instructions and Insider Trading

Aug 27th, 2012 | Filed under: Regulatory

As one academic study has put it, the mosaic defense is that “insider trading violations should not result when a perceptive analyst reaches a conclusion about a corporate action or event through an analysis of public information and items of nonmaterial nonpublic information [as a result of] good analytical skills.” In this case, it availed naught. Contorinis was found guilty, in October 2010, of seven counts of securities fraud and one count of conspiracy. He was sentenced to six years in prison and the forfeiture of $12.65 million.Read More