Saturday, 25 October 2014
Last updated 16 hours 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.
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…
David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.