Tuesday, 21 October 2014
Last updated 3 hours ago
Jan 4 2013 | 1:22pm ET
Former SAC Capital Advisors portfolio manager Mathew Martoma pleaded not guilty to insider-trading charges yesterday, setting the stage for another high-profile trial of a hedge fund manager.
Martoma entered his plea nearly seven weeks after he was arrested and accused of running the "most lucrative" insider-trading scheme in history, earning SAC some $276 million. He was formally indicted four days before Christmas on three counts of securities fraud and conspiracy after he continued to refuse to cooperate with prosecutors, who are widely thought to want his help in building a case against SAC founder Steven Cohen.
The case against Martoma is the first to refer specifically, if obliquely, to Cohen—who is referred to as the "owner" of Martoma's hedge fund—and coincided with the Securities and Exchange Commission's warning to SAC that an enforcement action against it was likely. Prosecutors said yesterday that their case would not include the sort of wiretap evidence that has damned previous insider-trading defendants, and will be based instead on trading and telephone records and e-mails. Sidney Gilman, the former University of Michigan professor accused of passing Martoma tips about Alzheimer's drug trials, is expected to testify.
SAC, Cohen and Martoma have all previously proclaimed their innocence. Neither Cohen nor SAC has been formally accused of wrongdoing.
Martoma entered his plea yesterday in Manhattan federal court. U.S. District Judge Paul Gardephe set a March 5 hearing for pretrial discovery updates and pretrial motions.
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 ...