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Komfie Manalo, Opalesque Asia: Federal investigators are looking into four hedge funds, including SAC Capital Advisors (now called Point72 Asset Management LP), Viking Global Investors LP, Visium Asset Management LLC and Citadel LLC, to determine whether they violated securities rules by trading on the alert issued by Height Securities to its clients.
According to The Journal, investigators from the Federal Bureau of Investigation and the Securities and Exchange Commission have uncovered more than 20 phone calls, emails and instant messages among investors, including hedge funds, and analysts at Height Securities between the time the firm sent the alert and when the markets closed.
The FBI and the SEC said the communication exchanges will form part of their investigation into their suspicion that a government employee illegally leaked information to Height Securities about a change in the government’s health care policy, particularly on Medicare payments.
The Feds want to know if the hedge funds used the leaked information to trade and profited from the inside information.
A lawyer from Height Securities was quoted as saying, "The information was provided to the government more than a year ago."
Several of the hedge funds involved declined to comment on the report, but Citadel spokesperson Katie Spring said the firm’s communication with...................... To view our full article Click here
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