SEC Ends Probe Of Third Point’s Discussions With Other Hedge Funds

Jun 15 2010 | 7:03am ET

The Securities and Exchange Commission has closed a two-year-old probe into Third Point, the hedge fund told its clients.

In its quarterly letter, the New York-based activist shop wrote that “the SEC has dropped the investigation it initiated in 2008 concerning our communications with other hedge fund managers.” The regulator launched that probe that summer, after Third Point had registered as an investment adviser and been subjected to its first SEC audit.

“During the course of the audit, the examination staff noted that we regularly communicate with portfolio managers at other hedge funds about investment and trading ideas,” Third Point founder Daniel Loeb wrote to investors at the time.

But in its quarterly letter dated Friday, Loeb said the SEC has said that “no further action” will be taken against his firm.

The letter was obtained by Dealbreaker.com.

“We remain registered with the SEC, and believe that the exacting standards of compliance to which we adhere are consistent with industry best practices.”


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of