Hedge fund Paloma Partners has sold its securities-lending business to the Bank of Montréal, the two firms said.

New York-based Alternative Investment Management has appointed Susan Potok Harrison as director of investor relations.

Jeffrey RathgeberBy Jeffrey Rathgeber -- In our travels we've come across this belief a few times, although much more so recently: "It's very hard for a diligence team to get to first base when it comes to examining a hedge fund manager for possible insider trading."

SAC Capital Advisors has slashed its stake in Bank of America even as it ramped up its stock holdings, the Stamford, Conn.-based hedge fund giant said in a regulatory filing.

The former head of Citigroup’s hedge fund unit has been named head of GMAC Financial Services.

The founder of Dynamic Decisions Capital Management, which is facing a fraud probe in Britain, has denied any wrongdoing and said that investors in its hedge funds will likely receive all of their money back.

Alberto Micalizzi (pictured right), an Italian finance professor, said that “any speculation of fraudulent activity is totally unfounded and results from misunderstanding and lack of knowledge of the specifics of our case.”

A New York-based hedge fund has settled charges that it misled the Chicago Board of Trade, the U.S. Commodity Futures Trading Commission said.

Insider-trading may be widespread in the hedge fund industry, the head of enforcement for the Securities and Exchange Commission said.

Ralph Cioffi and Matthew Tannin, the former Bear Stearns hedge fund managers acquitted of fraud charges last week, aren’t out of the legal woods just yet.

For the first time since February, hedge funds had a losing month, according to BarclayHedge.