Friday, 29 August 2014
Last updated 14 hours ago
Dec 10 2010 | 9:33am ET
The Securities and Exchange Commission is not averse to kicking firms while they’re down, and it seemed Gartmore Group could not be any more down.
Until yesterday, anyway, when the U.S. regulator fined the London-based hedge fund for violating its rule against "shorting into the deal," which bars anyone from shorting a stock for five days before participating in a secondary offering of that stock.
Gartmore's AlphaGen RhoCas fund did just that last May, according to the SEC, in a secondary offering of BB&T shares. The regulator levied a $1.35 million fine, including $928,117 in disgorgement.
"Because Gartmore sold short shares of BB&T during the restricted period and then purchased shares in the offering, Gartmore violated Rule 105," the SEC said. "The difference between Gartmore's proceeds from the first 145,000 shares of the short sales and the amount paid for the offering shares was $928,117.83."
An SEC fine may well be the least of Gartmore's troubles. The firm was rocked last month by the surprise resignation of its star hedge fund manager, Roger Guy, and has continued to bleed talent since. The firm put itself up for sale following that announcement, which has triggered widespread redemptions and caused its stock price to plummet.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...