Tuesday, 21 October 2014
Last updated 4 hours ago
Jul 6 2011 | 5:11pm ET
Hedge fund Rosen Capital Management has won its arbitration case against Bank of America Merrill Lynch.
The Financial Industry Regulatory Authority ordered BofA to pay the Santa Monica, Calif.-based hedge fund $63.7 million. Rosen, which had sought more than $90 million, accused Merrill of fraud, negligence, breach of contract and acting in bad faith when it made "unexpected margin calls" against the hedge fund in 2008. The FINRA panel did not specify the transactions in its ruling.
Rosen said the margin calls caused losses for two of its hedge funds—reportedly in excess of 80% in just a week.
BofA, which acquired Merrill amidst the financial crisis that year, is mulling an appeal.
"At all times, we met the contractual requirements of our relationship with this sophisticated hedge fund, which sought to blame us for losses during a period of extreme market volatility in October 2008," spokesman Bill Halldin said.
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 ...