Monday, 20 October 2014
Last updated 2 hours ago
May 9 2007 | 2:04pm ET
Just because you’re in the process of shutting down after losing $6.5 billion doesn’t mean the Feds will cut you a break when it comes to naked short-selling.
Amaranth Advisors has settled naked shorts charges with the Securities and Exchange Commission, agreeing to pay $716,819 without admitting or denying the charges. The SEC had accused the firm of selling short five names in advance of secondary offerings, and then covering the sales with securities bought in those offerings.
Amaranth, which is in the process of shutting itself down, assured its investors that the short sales had nothing to do with the firm’s historic losses, which resulted from bad natural gas trades.
“The trades that are the subject of the settlement represent a variety of trading errors or misunderstandings of the application of the rule,” founder Nick Maounis explained in an investor letter.
The firm agreed to pay a $150,000 civil penalty, $507,627 in disgorgement and $59,192 in prejudgment interest.
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 ...