Wednesday, 1 October 2014
Last updated 27 min ago
Apr 4 2008 | 2:00am ET
Last week, Pentagon Capital Management announced it would close shop in expectation of a regulatory complaint. Yesterday, that complaint came.
The U.S. Securities and Exchange Commission filed suit against the London-based hedge fund, which manages £1.1 billion (US$2.2 billion), and its CEO for allegedly improper mutual fund trading practices.
According to the SEC, Pentagon defrauded U.S. mutual funds through a late-trading and market-timing scheme it ran from about June 1999 to September 2003. The regulator said the firm’s Special Purpose Fund earned some $62 million in ill-gotten gains, with Pentagon and CEO Lewis Chester reaping the incentive fees.
“PCM actively traded U.S. mutual funds through Pentagon Fund’s accounts at numerous broker-dealers in the United States,” the complaint, filed in federal court in New York, said.
Lawyers for Pentagon say they will demonstrate their clients’ innocence in court.
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…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...