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

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...