Regulators Probe SAC Alum Grossman’s New Fund

Sep 22 2006 | 12:00am ET

Amaranth Advisors isn’t the only one awash in bad news this week. Former SAC Capital Advisors manager Thomas Grossman’s new hedge fund is facing probes on both sides of the globe regarding alleged funny stuff.

Bloomberg News reports that prying eyes want to know what’s up with some skyrocketing stock prices in several of Aeneas Capital Management’s portfolio companies. The Malaysian Securities Commission is probing the sudden price movements—especially that of Iris Corp., whose share price soared 270% after Grossman’s Aeneas took a 20% stake in it.
 
The report also said the Securities and Exchange Commission is getting involved. A lawyer returning calls for Aeneas, Kenneth Breen, told the White Plains, N.Y., Daily News that “Aeneas is cooperating fully with securities regulators.”

Whether or not Aeneas is guilty, it’s already suffering. Four Malaysian companies it has big stakes in took a dive when reports of the investigation hit.

Aeneas specializes in emerging markets strategies and has $400 million in assets under management.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note