October 14, 2016

Weekly Roundup October 14, 2016

Legal & Compliance:

Artis Capital Management was charged with failing to maintain adequate policies and procedures to prevent insider trading and failure to supervise. [SEC] Teeple’s supervisor, Michael Harden, was also charged in the latest action. Artis and Harden settled with the SEC for a fine and disgorgement of the illicit trading profits without admitting or denying the SEC’s findings. The case stems from 2013 insider trading charges against then-employee Matthew Teeple. [SEC]

With the backdrop of filing some of the largest enforcement actions of the year—including insider trading charges against Leon Cooperman and FCPA charges against Och-Ziff—the SEC announced a new “single year high” 868 enforcement actions for the just ended fiscal year (September 30). [SEC]

Leon Cooperman continues to adamantly deny the insider trading allegations against him, and refuses to settle with the SEC, arguing that he is fighting a battle against the regulator “for his legacy”. It also appears he’s fighting to avoid a ban from the industry similar to the one handed down to Steven Cohen in January. [Bloomberg]

“As a result of its reckless indifference and purposeful bad faith, SS&C actually facilitated an amateurish fraudulent wire request scheme and disbursed almost $6 million in cash from Tillage’s account, a theft that fell squarely with the purview of those SS&C claims to prevent.” Tillage Capital has sued SS&C for damages related to a cyber-heist involving Chinese hackers. [Arkin Solbakken]

Partner Fund Management LP has sued Theranos—the troubled startup that claimed they could perform a wide variety of tests with only a few drops of blood—for “fraudulently inducing [them] to invest and maintain [their] investment in the company.” [Wall Street Journal]

The European Securities and Market Authority recently published a Final Report along with Guidelines on the information that is expected, or required to be disclosed under the recently implemented Market Abuse Regulation with regards to commodity market derivatives or related spot markets. [ESMA]

K&L Gates offers a helpful white paper on China’s recent moves to open itself up to private security investment fund managers. [K&L Gates]

“A standard on Islamic hedging could provide greater clarity between counterparties as the industry makes a gradual shift from customized solutions towards volume transactions which can be cost- and time-effective.” [Reuters]

“Don’t overbill and know our business.” Generic presentations, the bottom line, wearing jeans are all actions that will get your pitch pitched by inhouse counsel. [Corporate Counsel]

 

Interlude:

While one commenter inquired, “Why don’t you just get a normal f-ing kettle,” a man wrestled with his wi-fi enabled tea kettle for 11 hours before he was able to enjoy his first cup. In the words of another commenter, “At this point, I’m desperate to avoid the future at all costs.” [The Guardian]

“Crazy Flipper Fingers, or CFF for short, is Portland’s largest pinball gang. It started off in 2005 as a loose group of 20 or so hard-drinking types, united by a pure, obsessive love of pinball.” Portland has a lot of things. But their competitive pinball scene may be one of the most Portland things Portland has. [Vice]

 

Hedge Fund:

Platinum Partners, the embattled hedge fund that in June suspended redemptions and moved to liquidate, is planning to pay back approximately $80 million to investors. Most of that money, it seems, will go to one of the firm’s co-owners, Bernard Fuchs. [Wall Street Journal]

Preqin reports that as of June 30, 2016, the U.S. accounted for roughly 72% of the global AUM in hedge funds, 62% of the institutional investors active in hedge funds and 60% of the active hedge fund managers. Within the U.S., New York, as would be expected, is the largest with regards to number of hedge fund managers at nearly 1,200, more than double the next highest of California, with 465. [Preqin]

“In a zero-rate environment it is difficult to generate sensible returns in a liquid long-short credit fund,” [Saka Capital CEO Assan] Din said. “Expected returns going forward are expected to be 5 percent or lower and as such we decided to give back capital to our investors.” [Bloomberg]

Perry Capital, which announced plans recently to shut its doors, will cut 32 of its 58 staff by the end of the year. [NYS Department of Labor]

A group of hedge funds have found a way to bet on the U.S. election—buying the Mexican Peso. As Trump’s prospects wax and wane, so to does Mexico’s currency. [Bloomberg]

“At the end of the day, the math says that the best risk-adjusted returns are with hedge funds.” The Kentucky Retirement System—despite, or because, being one of, or the, most underfunded pension systems in the country—is standing behind its hedge fund investments. [Inside Sources]

Gina Miller, co-founder, along with her husband, Alan Miller—founder of one of Britain’s earliest hedge funds—of SCM Private, has launched a bid to prevent Theresa May from triggering Article 50, and allowing for Brexit to commence, without parliament’s approval. [The Guardian] This comes as May acquiesced and allowed for “full and transparent parliamentary scrutiny” for the process. [The Guardian]

Bridgewater Associates had a scare at their Westport, CT headquarters after reports of a bomb threat. The offices were evacuated but no bomb was found. [Westport News]