From BusinessWeek: SAC Capital Advisors LP, the hedge fund run by billionaire Steven A. Cohen, made at least $14 million in the past 10 years on suspicious trades, according to the Financial Industry Regulatory Authority.
The brokerage industry’s self-regulatory body referred trades in 19 companies to the U.S. Securities and Exchange Commission for further investigation, according to Finra documents reviewed by Bloomberg News and to two people briefed on the matter. The hedge fund’s bets -- on stocks including United Therapeutics Corp., Genentech Inc. and ViroPharma Inc. -- drew Finra’s attention because they were made before market- moving events such as acquisitions and the release of clinical- trial results for new drugs.
Finra, which monitors securities markets for price spikes linked to news such as mergers and earnings, made 259 referrals to the SEC last year for possible insider trading. The information isn’t an allegation or proof of securities-law violations. SAC Capital, which oversees about $14 billion, hasn’t been accused of any wrongdoing involving the transactions…
Learn more. Check out http://www.businessweek.com/news/2011-10-24/sac-capital-netted-14-million-in-trading-flagged-by-regulator.html
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