Wed, Nov 26, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

SEC agrees to dismiss six year old case against Gabelli’s CIO

Friday, July 04, 2014

Benedicte Gravrand, Opalesque Geneva:

In the midst of the credit crisis, Gabelli Funds had another beast to contend with: claims of market-timing abuses by the Securities and Exchange Commission (SEC).

According to Bloomberg, Marc Gabelli, 40, the son of the company founder Mario Gabelli, and Chief Operating Officer Bruce Alpert, 56, allegedly allowed in 1999-2002 London-based Headstart, then known as Folkes Asset Management, to triple its market-timing capacity in exchange for an investment in another Gabelli hedge fund. Gabelli Funds LLC (aka GAMCO), a $43 billion, public mutual and alternative funds management firm, agreed to pay $16 million to settle the claims.

According to the SEC’s summary, its April 2008 complaint alleged that a hedge fund (Headstart/Folkes) had been "authorized to place market timing trades in the Gabelli Global Growth Fund (GGGF), a fund advised by Gabelli Funds, in exchange for an investment in a hedge fund advised by an affiliate of Gabelli Funds. The complaint also alleged that Alpert wrote a memorandum in September 2003 that was designed to assure investors that Gabelli Funds did n......................

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. Investing - George Soros puts $500m of his money on Bill Gross, Soros, Paulson backed Hispania Activos mulls Realia takeover, Ex-Credit Suisse trader’s hedge fund sees yen shorts as crowded, Hedge hunters double default-swaps as views split, Large hedge fund positions come under pressure, Vikram Pandit's fund picks 50% stake in JM Financial's realty lending arm for $87m[more]

    George Soros puts $500m of his money on Bill Gross From WSJ.com: Before Bill Gross was fully settled in at his new firm, Janus Capital Group Inc., he received an unlikely visit from the chief investment officer of famed investor George Soros ’s firm, according to a person familiar with t

  2. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  3. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca

  4. Opalesque Exclusive: Risk management emerges as a competitive focus area for hedge funds[more]

    Bailey McCann, Opalesque New York: Risk management has always been a core component of any trading strategy, as well as a critical part of business management. However, as macreconomic weakness persists, and alpha becomes increasingly hard to generate, risk management as emerged as a more promin

  5. Gross: Inflation is required to pay for prior inflation[more]

    Benedicte Gravrand, Opalesque Geneva: As inflation rises, every dollar will buy a smaller percentage of a good. While deflation will mean a decrease in the general price level of goods and services. These two economic conditions are both in the waiting room. The consensus would like the former to