Saturday, 27 December 2014
Last updated 3 days ago
Jun 29 2011 | 4:07am ET
Bain Capital's hedge fund unit has agreed to return $1.7 million it earned for buying stock it had shorted three days earlier.
Boston-based Brookside Capital Partners earned the haul two years ago, participating in a Lincoln National Corp. stock offering just three days after shorting 600,000 of the company's shares. Investors are barred from participating in offerings within five days of shorting a stock, a practice known as shorting into the deal.
According to the SEC Daily Digest, “In June 2009, a fund managed by Brookside bought stock through a public offering after changing its investment thesis, even though the same fund had sold the same stock short three days before during the restricted period.”
Brookside was ordered to pay $1,658,660 in disgorgement and $90,419.22 in prejudgment interest, along with a $375,000 civil monetary penalty.
A Brookside spokesman said the firm cooperated with the SEC, paid all associated costs, and its funds were not harmed.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.