Tuesday, 30 September 2014
Last updated 1 hour ago
May 20 2011 | 1:33pm ET
A Canadian regulator has ruled that hedge fund manager Otto Spork committed fraud by inflating his funds' returns and overcharging investors.
The Ontario Securities Commission rapped Spork, of Sextant Capital Management, for "non-criminal fraud." According to the OSC, Sextant inflated the value of the Strategic Opportunities fund and two offshore hedge funds by investing in a pair of private companies with rights to develop Icelandic glaciers. The regulator says that 95% of the hedge fund’s assets are invested in the companies, which are themselves almost totally owned by founder Otto Spork and the Sextant funds.
The fees charged were "unreasonable" and the "payments made to Otto Spork constitute acts of fraud," the OSC ruled. The regulator also said that Spork "misappropriated money."
It is unclear whether Spork, who vowed a "vigorous" defense, will appeal the ruling. The OSC is yet to schedule a sanctions hearing.
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…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...