Hedge Fund Tipster Found Guilty Of Conspiracy, Securities Fraud (Finalternatives)
Former Foundry Networks executive David Riley was found guilty today of giving a hedge fund analyst insider information. A jury in New York found Riley guilty of conspiracy and securities fraud. The jury was deadlocked on a third count of securities fraud. Prosecutors say that Riley—then chief information officer at Foundry Networks—told hedge fund Artis Capital Management’s Matthew Teeple about Brocade Communications Systems’ planned deal for Foundry in 2008. Teeple, who pled guilty and testified against Riley, then told 15 others.
Nouriel Roubini: ‘Financial contagion cannot be ruled out’ (EconomicCollapseNews)
Despite the chaos that is transpiring all over the world – the Hong Kong protests, the U.S. war against ISIS, the Russia-Ukraine conflict, the Ebola outbreak – financial markets are still roaring ahead and seem ignorant of what’s going on in every region of the globe. Nouriel Roubini, an economist at New York University, explained in an article published on Project Syndicate that this is a perfectly normal reaction in the markets, but the good times could eventually come to an abrupt end. Roubini wrote that international markets are pushing ahead and are “rationally complacent,” but “financial contagion cannot be ruled out.”
Analysis: New York State Common equity hedge fund managers exhibit above average stock selection skill (Pionline)
An analysis of public holdings shows that equity hedge fund managers in the New York State Common Retirement Fund’s absolute-return strategy exhibit “above average” skill as stock pickers, but are outside the top 25th percentile of the fund universe as a whole. Symmetric Information Technologies analyzes 13F filings of hedge funds and calculates security selection skill based on funds’ long positions, and their relative performance to overall sector returns. The most recent analysis notes the “accomplishment is still impressive given the restrictions pension funds operate under and shows they are able to pick managers that produced for them better than average skill compared to what is available in the HF universe. This is no easy task.”
Vegas man indicted in hedge fund looting scheme (MyNews3)
Two men have been charged with conspiracy and fraud for engaging in a scheme to misappropriate $34 million from two Florida-based hedge funds from 2008 to 2010. Robert Buckhannon, 53, of Las Vegas and Terry Rawstern, 66, of Aberdeen, S.D., are charged in a criminal indictment with one count of conspiracy to commit wire fraud and one count of wire fraud. Buckhannon, who was arrested by FBI agents Tuesday in Henderson, pleaded not guilty Wednesday at an arraignment before U.S. Magistrate Judge George Foley, and was released on a personal recognizance bond pending trial.
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