Japanese Hedge Fund Disputes Insider-Trading Finding

Jul 28 2014 | 11:43am ET

A small Japanese hedge fund is taking on a big foe in its fight to be cleared of four-year-old insider-trading charges.

Stats Investment Management is challenging a potential fine from the Japanese Financial Services Agency over alleged insider-trading by a fund manager at the firm. A battle with financial regulators is rare in the country.

Japan’s Securities and Exchange Surveillance Commission ruled that the Stats manager sold shares of Inpex Corp. on a tip from a Nomura Securities salesman. But that salesman, who previously admitted to passing on the information, now says he does “not really remember” passing the information to the trader. Stats adds that it sold its Inpex shares two days before the SESC alleges the portfolio manager learned of the tip.

Stats, which has US$300 million in assets under management, has vowed to sue the FSA if it levies a fine on the SESC’s recommendation.

“We will fight to the end,” Stats CEO Shogo Sekimura told Reuters.


In Depth

Fund Manager's Disease: Common Symptoms and Proposed Remedies

May 3 2016 | 6:11pm ET

The cadre of 25 research analysts at Murano Systems speaks with more than 150 investors...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...