Fri, Mar 27, 2015
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner