Hedge Fund Goldfinch Hit By NYMEX For Natural Gas Shorting

Mar 16 2011 | 12:45pm ET

The New York Mercantile Exchange has rapped hedge fund Goldfinch Capital Management for exceeding position limits in natural gas futures.

The Houston-based energy hedge fund was ordered to pay a $50,000 fine and $17,287 in profits earned on the excess U.S. contracts, NYMEX's owner, the CME Group, said yesterday. According to NYMEX, Goldfinch's short position was "53 contracts (5.3%) over the expiring speculative spot month position limit."

The violation occurred on Nov. 23 for the December 2010 contract, and is Goldfinch's third such infraction over the past to years. The hedge fund later bought enough contracts to cut its position back under the 1,000 contract limit.


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...