Saturday, 30 August 2014
Last updated 1 day ago
Jan 23 2012 | 2:06pm ET
In the wake of new insider-trading charges against two former employees, hedge fund Diamondback Capital Management has taken another step towards putting the damaging scandal behind it.
The Stamford, Conn.-based hedge fund—the only one of the four hedge funds raided in November 2010 to remain standing—agreed to pay more than $9 million to settle with the Securities and Exchange Commission. The firm will pay a $3 million fine and surrender $6 million in profits earned on trades made by former portfolio manager Todd Newman, who was arrested last week. Former analyst Jesse Tortora pleaded guilty in the case and is cooperating with prosecutors.
"We believe that the proposed settlement appropriately sanctions the misconduct while giving due credit to Diamondback for its substantial assistance in the government's investigation and the pending actions against former employees and their co-defendants," SEC New York chief George Canellos said.
In addition to cutting a deal with the SEC, Diamondback won a non-prosecution agreement from federal prosecutors.
"We are gratified finally to have reached closure on the government proceedings, and deeply regret the difficulties caused to our investors during the last 14 months," Diamondback wrote to investors.
Diamondback's assets under management have fallen by more than half as investors bolted the firm following the Federal Bureau of Investigation raid.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...