Tue, Jul 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Sigma Capital to settle SEC insider trading charges with $14m

Monday, March 18, 2013

Benedicte Gravrand, Opalesque Geneva: - The U.S. Securities and Exchange Commission (SEC) announced today (March, 15) that New York-based hedge fund advisory firm Sigma Capital Management had agreed to pay nearly $14m to settle charges that the firm had engaged in insider trading. Indeed the firm allegedly traded on early information obtained by one of the firm’s analysts about quarterly earnings for Dell and Nvidia Corporation.

In a complaint filed today along with the proposed settlement in federal court in Manhattan, the SEC also charged Sigma Capital in the insider trading scheme and named two affiliated hedge funds – Sigma Capital Associates and SAC Select Fund (an affiliate of SAC Capital) – as relief defendants that unjustly benefited from Sigma Capital’s violations, says the announcement.

This results from the SEC’s ongoing investigation into expert networks and hedge funds that use them.

In this instance, Jon Horvath, a former analyst at Sigma Capital, was charged and agreed to a settlement earlier this month.

Apparently, Horvath provided Sigma with non-public details of quarterly earnings at Dell and Nvidia, which he’d learned in discussions with a group of hedge fund analysts. Sigma then traded Dell and Nvidia stocks ahead of the earnings announcements in 2008 and in 2009, and made gains of $6.2425m from those trades, the SEC says.

On the radar

The SEC’s inv......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Bridgewater turns bearish on China[more]

    Komfie Manalo, Opalesque Asia: The world’s biggest hedge fund Bridgewater Associates and one of the most vocal of China’s potential is now turning its back against the world’s second largest economy as it joins a growing list of high-profile investors who are challenging China’s potentials.

  2. Launches - Ex-Brevan Howard star Rokos builds team for new fund, Former Och-Ziff manager’s firm starts health care hedge fund, Industry veterans launch commodity investment firm Aron Capital Management, Nikko Asset Management launches two UCITS funds, Capital Group plans to debut Asian investor targeted fund[more]

    Ex-Brevan Howard star Rokos builds team for new fund From WSJ.com: Chris Rokos, a former star trader at Brevan Howard Asset Management LLP, has hired an economist from Nomura to join the team he’s assembling for his much anticipated hedge fund launch. Mr. Rokos, whose firm is due to b

  3. Institutions - Pension fund dismisses Texas consultant, Rhode Island pension fund gets 2.2% investment return, far below assumed rate of 7.5%, New Jersey pension investments see a drop-off in returns[more]

    Pension fund dismisses Texas consultant From Sandiegouniontribute.com: The county retirement board on Thursday terminated the Texas consultant who was given the reins of the $10 billion pension fund, and whose investment picks left many employees and retirees feeling taken for a ride.

  4. SWFs - Sovereign wealth funds paid around $14 billion in fees[more]

    From SWFinstitute.org: When it comes to the financial sector, asset management is one of the most profitable industries in the world. The Boston Consulting Group put out a 2014 figure saying there is US$ 74 trillion worth of professionally-managed assets. One of the fastest growing institutional inv

  5. Investing - Carlyle teams with TCW in push for ordinary investors[more]

    From Bloomberg.com: Carlyle Group LP isn’t backing down from its goal of offering alternative strategies to the masses, despite early setbacks. The Washington-based firm is teaming up with TCW Group, which is majority owned by Carlyle funds, to offer three vehicles that give ordinary investors acces

 

banner