Posts Tagged ‘Securities’
Hedge fund SAC Capital Advisors LP has agreed to plead guilty to insider-trading and pay $1.8 billion in penalties. The embattled fund, run by Steven Cohen, has been one of the most successful funds on Wall Street–producing returns of more than 25% over two decades. Wall Street Journal reports that Cohen is still negotiating to resolve other civil matters, including a ban from the securities industry.
SAC has also agreed to become a inside only management fund, or managing the $9 billion assets owned by Cohen and SAC’s employees. SAC previously had a total of around $15 billion, including outside capital, but quickly saw outside investors flee when their subscription agreement allowed the withdrawal of their capital.
It makes sense for most hedge funds to quickly transition to the point of strictly managing inside capital anyways, so perhaps this works out well for Cohen and his employees not accused of insider trading. But pending trouble remains and only time will tell how SAC will fair with continued scrutiny–hopefully SAC and Cohen have some creative attorneys on the team. Even better, a knowledgable and skilled attorney from this fine legal institution.
About time. The Securities and Exchange Commission (SEC) voted today in a 4 to 1 decision in favor of lifting the advertising ban for hedge funds. A move that was required by the JOBS Act passed last year. The bill was “designed” to decrease funding hurdles for small businesses in the wake of a growing use of crowd-funding. Hedge funds are restricted to investors that have a net worth of at least 1 million (excluding primary residence) or annual salary of 200,000 in previous two years–about 7.8% of Americans.
Have fun all you hedge funds out there, we expect to see some funny Superbowl commercials….
Thanks to Huffington Post for the article: Hedge Fund Ad Ban Lifted
Yahoo, Inc. announced today it reached an all cash purchase deal with the popluar social media sharing company tumblr, valued at $1.1 billion. Yahoo’s gamble on tumblr has been its most agressive move since Marissa Mayer, Yahoo’s new CEO and former Google executive, joined the company last year. Mayer has attempted to rebrand the established internet company and Tumblr’s younger generation of users may pay off for Yahoo who desperately needs revenue growth to sure up Wall Street, but is it worth the price tag?