Wednesday, 22 October 2014
Last updated 16 hours ago
Jul 16 2009 | 9:08am ET
Much to his chagrin, former Bear Stearns hedge fund manager Ralph Cioffi will have to stand trial for insider trading.
Cioffi, who managed two Bear credit funds that were some of the earliest victims of the credit crisis and whose failure triggered Bear’s collapse, lost his bid to have the insider-trading charges against him tossed. He and his former chief operating officer, Matthew Tannin, have been accused of misleading investors in the High-Grade Structured Credit Strategies Master Fund and a more highly-levered sister fund. The funds’ implosion cost investors $1.6 billion and Bear its independence. Tannin has not been charged with insider-trading, which could get Tannin an extra 20 years in prison if he is convicted.
Cioffi had argued was not duty-bound to report any moves he made with his own money to the hedge funds’ clients. Prosecutors say that Cioffi withdrew $2 million from one of the hedge funds just before it collapsed.
“Charging a hedge fund manager with insider-trading is unprecedented” in such a matter, Cioffi’s lawyer told U.S. District Judge Frederic Block in Brooklyn, N.Y. But Block was unmoved.
“Let’s wait for the trial,” he said.
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 ...