Wednesday, 22 October 2014
Last updated 12 hours ago
Feb 14 2007 | 11:01am ET
Gradient Analytics, the independent research firm accused of conspiring with hedge funds to drive down stock prices, said today that the Securities and Exchange Commission has ended its probe into the firm.
Scottsdale, Ariz.-based Gradient was informed by letter from the SEC’s San Francisco office that the probe has ended and that the office recommended no enforcement action be taken.
“We are not surprised by the SEC decision,” CEO Brad Forst said. “Independent and objective research may be unpopular with some companies, but it is vital information in the equities market.”
The SEC opened its investigation after online retailer Overstock.com sued Gradient and hedge fund Rocker Partners, accusing them of trying to manipulate its stock price. Later, Canadian pharmaceutical company Biovail filed a similar suit against Gradient and another hedge fund.
Forst said he is confident Gradient will prevail in those cases, arguing that independent research is protected speech under the First Amendment.
“Our work represents both the right of free speech and the right of shareholders and investors to understand the questionable business practices of public companies,” he said.
Forst succeeded firm founder Carr Bettis as president and CEO in December. At the time, the firm denied that the move had anything to do with the SEC probe or lawsuits. Bettis remains chairman of Gradient.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...