Tue, May 23, 2017
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. Opalesque Exclusive: Time to invest in robotics? (part 1)[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The London-based, Swiss-born manager of the RoboCap UCITS Fund, talks to Opalesque about investing

  2. Investing - Hedge funds have been selling big winners this year, Hedge funds are betting $1 billion that Snapchat shares are going to drop, Here are the biggest bets made by top hedge funds in the first quarter[more]

    Hedge funds have been selling big winners this year From CNBC.com: Hedge fund managers' most popular stock to start the year has been a familiar name that is falling short in terms of performance, while the least popular companies all have been crushing the market. Procter & Gamble

  3. Investing - Third Point's Loeb surfs on as hedge fund washout continues, George Soros has added to his losing bets against the stock market, Hedge funds, VCs and the CIA are throwing money at ex-Bridgewater data scientists' startup, Hedge funds shed retail amid fears of "apocalypse"[more]

    Third Point's Loeb surfs on as hedge fund washout continues From Reuters/Nasdaq.com: Billionaire investor Daniel Loeb said on Thursday that he is still making money even as the hedge fund industry struggles. Loeb, who oversees the $16 billion hedge fund firm Third Point LLC, sa

  4. Investing - Tudor Jones backs AI hedge funds, Massive hedge fund trades highlight insider buying: GE, Pentair, Tempur Sealy, Apollo Global and more, Hedge funds big wigs are buying consumer and selling tech, here's the stocks[more]

    Tudor Jones backs AI hedge funds From FT.com: Hedge fund magnate Paul Tudor Jones has invested in a brace of artificial-intelligence powered "quantitative" hedge funds, underscoring the increasing acceptance that the industry will need to turn more to technology and away from traditional

  5. Opalesque Roundtable: Rise of high-frequency trading in Europe a challenge for traditional asset managers[more]

    Komfie Manalo, Opalesque Asia: The rise of high-frequency trading in Europe, dominating over 80% of the market, has become a challenge for traditional asset managers especially when it comes to risk management, said Philippe Malaise, chairman of advisory firm