Monday, 20 October 2014
Last updated 2 days ago
Jun 22 2011 | 10:19am ET
In the now-settled matter of Securities and Exchange Commission v. JPMorgan Chase, Magnetar Capital would like to politely agree to disagree.
The hedge fund, which the SEC said “heavily influenced” the selection of securities for the collateralized debt obligation—allegedly structured at its behest—at the heart of its case against JPMorgan, “respectfully [stands] by our prior statements on these topics,” which amount to a denial that Magnetar had much to do with the CDO at all.
“We did not control the asset-selection process and our Mortgage CDO investment strategy was designed and implemented to maintain a market-neutral portfolio,” the hedge fund said in a statement.
Magnetar was never accused of any wrongdoing in the case, and says it never will be: “The SEC Staff issued a closing letter to Magnetar stating that it does ‘not intend to recommend any enforcement action’” against the hedge fund, its funds or staff, Magnetar said in its statement.
JPMorgan yesterday agreed to pay $154 million to settle the SEC probe of the $1.1 billion “Squared” CDO. The SEC charges that it misled investors in a complex mortgage securities transaction just as the housing market was starting to plummet. Under the settlement, harmed investors will receive all of their money back.
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 ...