Wednesday, 17 September 2014
Last updated 7 hours ago
Apr 29 2013 | 12:03pm ET
The SAC Capital Advisors insider-trading scandal has made it to the small screen.
"Person of Interest" featured a plotline seemingly ripped from the headlines about the hedge fund on Thursday night. The CBS crime drama told the tale of insider-trading at a hedge fund called "VAC Capital," in which a doctor overseeing a drug trial warns a trader that the trial was "about to fail." The VAC trader turned a $500 million profit on the tip.
The story bears obvious similarities to the case against former SAC trader Mathew Martoma, who is accused of earning SAC $276 million trading on tips about Alzheimer's drug trials he received from a University of Michigan professor who was overseeing them. The now-former professor, Sidney Gilman, has pleaded guilty to warning Martoma about an adverse turn in the trials.
"Person of Interest" also features the term "black edge," which is allegedly used by SAC traders to refer to insider information, the New York Post reports.
"You don't understand," the VAC trader tells his source on the show. "The boss is on my ass 24/7. Either get black edge or out."
"Black edge?" the doctor, who in the show has confronted the trader about his trades, asks.
"Inside information that no one else has," the trader replies.
Martoma has pleaded not guilty to the allegations against him.
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…
The London Whale saga is a twist on the typical rogue trader story as the rogue trader recognized the error of his ways and was prepared to take his medicine but was instructed by superiors to “defe...