Monday, 20 October 2014
Last updated 2 days ago
Apr 3 2012 | 2:17am ET
Pentagon Capital Management's bill for allegedly late-trading mutual funds has grown by more than $20 million.
A federal judge last week entered a final judgment against the defunct hedge fund and its founder, Lewis Chester. In addition to the $76.7 million in disgorgement and civil penalties U.S. District Judge Robert Sweet imposed in February, the defendants were ordered to cough up a further $21.8 million in prejudgment interest.
Chester and Pentagon have vowed to appeal the judgment.
Chester shut Pentagon down four years ago as the Securities and Exchange Commission prepared to bring its suit. The regulator sued the hedge fund a week later anyway, accusing the once US$2.2 billion firm of defrauding mutual funds from June 1999 through September 2003.
In February, Sweet sided with the SEC in the case, ruling that Pentagon and Chester "intentionally, and egregiously, violated the federal securities laws through a scheme of late trading."
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 ...