And the hits just keep on coming…

It is clear from all the news these last few weeks that insider trading indictments are not going away. The SEC has clearly targeted any and all who are suspected of doing this dirty deed. And if insider trading indictments aren’t bad enough, it seems now the press is focused on how hedge fund managers are spending their market winnings. 

Just as we all were settling to read about the recent indictments of SAC Capital Advisors LP personnel as well as additional indictments in the Galleon Group case, we got wind of a recent spending spree by SAC founder Steve Cohen. His purchase of a home in the Hamptons and Picasso’s “Le Rêve”  have made substantial headlines around world. For news junkies, these are the stories that keep on going.

It looks like insider trading indictments are going to remain high up on the SEC’s agenda for the time to come. As such investors and fund managers need to be prepared. Fund litigation and dispute resolution is something on the minds’ of all involved in the hedge fund industry these days.

At GAIM Ops Cayman, there will be sessions devoted to this topic and if you have not registered for this great event you can do so by clicking here . Separately, we are pleased to announce a New York-based Fund Governance and Litigation Summit in September. This new program is geared directly to managers, investors, and lawyers who want to know more about best practices in this area of the hedge fund industry.

In the meantime, settle in, the ride is far from over.

-    The IIR Alternatives team

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Worried About Insider Trading?

We’ve noticed an increased appetite for anything related to hedge fund due diligence and compliance.

Today’s headlines are filled with stories of hedge fund managers accused of insider trading.

The question is how should investors react to the increasing number of insider trading cases splashing the front of the Wall Street Journal?

Some experts, including some of the fine folks we have lined up to speak for GAIM Ops Cayman, say you may not need to react at all.

Clearly insider trading is an important issue and should be on everyone’s mind, especially when you are evaluating a new investment.  However, if you are currently invested in a fund that is going through an investigation, remember –innocent until proven guilty.

The SEC has beefed up their enforcement team and is on high alert for high profile cases.  In FY 2012, the SEC opened 734 enforcement actions, flat with the735 that were opened in FY 2012, with only 58 of these cases for insider trading, according to the SEC.

In actuality, most SEC enforcement actions do not end with a conviction, but that is not what the media and court of public opinion would have you believe.  So, why is the media obsessed with hedge funds?

You can find out more this April at GAIM Ops Cayman, where  Dan McCrumfrom the Financial Times and Maneet Ahuja from CNBC  and Author of The Alpha Masters will examine this topic further and provide insight into insider trading.

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Never a dull moment…

Just when we thought things were settling down for the Thanksgiving break, the hedge fund industry is rocked with another insider trading scandal. Once again, hedge funds are on the hot seat.

 Here is a quick round up of the news over the last few days that will make for some interesting reading during the next few days:

• From the Wall Street Journal: Hedge Fund Manager Had His Finger on the Pulse of Elan 
• From Bloomberg: Brevan Howard on Hiring Spree as Hedge Fund Rebuilds in New York 
• From Reuters: Worries on U.S. taxes drive hedge fund exits to near 3-year high 
• From Associated Press: Ex-hedge fund trader charged in $276 million insider ploy 
• From Barron’s: Investors in Hedge Fund Credit Strategies Get Worried 

Take a look. Each story provides a bit of light reading that is sure to keep you occupied over the next few days to prepare you for the last month of the year. However to get a clear and focused understanding of the impact of another insider trading scandal, increased taxes, questions about yields and hiring trends will affect the industry in the weeks, months and years ahead, you need to come to GAIM USA in January.

This year’s program provides real insight and debate on these issues and more. So don’t delay, register today in order to make sure you and your organization are prepared for what lies ahead. Click here to download the brochure - Click here to register.

 Have a happy and meaningful Thanksgiving!
-The IIR Alternatives Team

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