Sunday, 25 January 2015
Last updated 2 days ago
Sep 24 2010 | 1:10pm ET
Hedge fund Carlson Capital has settled charges that it violated short-selling rules governing public stock offerings.
The Dallas-based hedge fund, without admitting or denying the Securities and Exchange Commission allegations, agreed to pay $2.7 million to settle the charges, including $2.3 million in disgorgement. According to the SEC, the hedge fund four times violated its “antimanipulation” Rule 105, which bans investors with a short interest in a stock five days before an offering from participating in that offering.
The SEC also charged the firm with have “insufficient” preventative policies.
In addition to paying the fine, Carlson accept a censure and an order barring it from further violations of Rule 105.
“Investment advisers must recognize that combined trading by different portfolio managers can still constitute a clear violation of Rule 105 when short selling takes place during a restricted period," said SEC associate enforcement director Antonia Chion. "This is true even when the portfolio managers have different investment approaches and generally make their own trading decisions.”
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…