Monday, 20 October 2014
Last updated 12 min ago
Jun 11 2013 | 10:37am ET
Arrowhead Capital Management founder James Fry's fate is now in the hands of a jury.
The hedge fund manager, who is charged with aiding and abetting the $3.65 billion Thomas Petters Ponzi scheme, lied to investors to win millions of dollars which he then turned over to—and lost with—Petters, prosecutor Kimberly Svendsen said during her closing argument yesterday.
Fry faces 12 counts of fraud and lying to the Securities and Exchange Commission. While prosecutors do not allege that he knew Petters was running a scam, they say he covered up Petters' default on notes owned by Arrowhead, lying to investors and potential investors about them. The government also alleges that he lied to clients about the criminal history of Petters' chief fundraiser, Frank Vennes.
Fry's lawyer, Joe Friedberg, countered that Fry had no ideas that Petters was up to no good.
"His investors knew an awful lot of what he knew, and believed an awful lot of what he believed," Friedberg said.
"We concede that Mr. Fry was negligent as he dealt with Petters—as were hundreds of others," he continued. "But you can't convict on negligence, carelessness or a mistake."
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 ...