Monday, 20 October 2014
Last updated 31 min ago
Feb 7 2011 | 10:08am ET
At least 11 hedge funds were the beneficiaries of insider-information provided by Primary Global Research analysts, according to a newly-unsealed criminal complaint and the Securities and Exchange Commission's lawsuit against six people in the case.
The number 11 is mentioned in the SEC's suit against Walter Shimoon, a former Flextronics International executive and Primary Global consultant. Shimoon, who has been arrested and charged in the case, "spoke with representatives of at least 11 different hedge funds," none of which were identified.
What's more, those hedge funds acted on the information, according to brokerage records showing "that the hedge funds used the inside information that Shimoon provided during these calls to trade the securities of at least Flextronics" and Omnivision Technologies. Shimoon is also alleged to have passed on tips about Apple Inc. to "Hedge Fund No. 2" in November 2009.
In addition, the SEC said Shimoon passed tips on to Bob Nguyen, an employee of Primary Global. Nguyen and another Primary Global employee, James Fleishman, the complaint against whom was unsealed last week, allegedly acted as a conduit for Shimoon's tips, making summaries of his information available to clients.
Nguyen has pleaded guilty and is cooperating in the case.
Another hedge fund, also unidentified, had "regular communications" of another of the accused tipsters, Mark Longoria, and received confidential tips from him, the SEC alleged in its lawsuit against Longoria.
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 ...