Saturday, 27 December 2014
Last updated 3 days ago
Dec 10 2012 | 5:46am ET
Federal investigators are looking into SAC Capital Advisors' trading in two companies as the insider-trading probe of the hedge fund continues to expand.
The Federal Bureau of Investigation and Securities and Exchange Commission are eyeing SAC's moves in shares of InterMune and Weight Watchers International, Bloomberg News reports. The SEC told SAC two weeks ago that it would likely face SEC civil charges, after a former portfolio manager was arrested on insider-trading charges.
Like the stocks in the case against Mathew Martoma, InterMune is a pharmaceutical company. Authorities are looking at SAC's trades in the stock in the first half, around the time a pulmonary drug received an unexpectedly favorable regulatory review. The hedge fund then dumped the shares—in time to avoid a big drop when another lung treatmen failed to pass regulatory muster. Former SAC portfolio manager Nikej Shah was involved in at least some of the InterMune transactions, according to Bloomberg.
SAC's successful 2011 bet on Weight Watchers is also under scrutiny. The hedge fund bought up more than two million shares in the first quarter of 2011, watched them double, and then sold nearly all of them just before the stock price slumped on word of higher spending.
Neither SAC nor founder Steven Cohen have yet been accused of any wrongdoing. But published reports indicate that the SEC hopes to extend fraud charges to Cohen, and that the FBI sought Martoma's cooperation in building a case against Cohen.
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.