Insider Trading Probe Spreads Across Wall Street
Tweet
Share
E-mail
Get Alerts JNS Hot Sheet
Join SI Premium – FREE
The government's vast insider trading probe got wider today as two prominent hedge funds and two massive mutual funds received government subpoenas.
In a letter to investors, Steven Cohen's hedge fund SAC Capital disclsoed it has received an inquiry regarding the recently disclosed insider trading investigation. The subpoena were "extraordinarily broad" and identical to the subpoenas sent to a number of investment managers, the letter stated. The subpoena does not focus on specific securities, sectors or strategies. SAC said while the subpoena doesn't shed light on whom or what the government is investigating, one focus may be the use of consultants and soft dollars.
Yesterday, two hedge funds run by former SAC Capital managers were said to be involved in the vast insider trading probe - Diamondback Capital Management LLC and Level Global Investors LP.
Ken Griffin's Citadel hedge fund received a "wide ranging subpoena", according to Fox Business Network's Charlie Gasparino. "They got a subpoena. It's the same subpoena that sources tell FOX Business Network that Steve Cohen over at SAC Capital got. It's a wide ranging subpoena and it dates back to 2008 asking for information on certain stocks. From what I understand, it's not just healthcare stocks, which has been a primary focus," Gasparino stated.
Mutual fund giant Janus (NYSE: JNS) disclosed in an SEC filing mid-day that it is part of the probe.
"Janus Capital Group Inc. has received an inquiry regarding the recently disclosed insider trading investigation on Wall Street calling for general information and intends to cooperate fully with that inquiry. Janus does not intend to provide any further updates concerning this matter unless and until required by applicable law," the company said in a statement.
Wellington Management is the other mutual fund heavyweight that has received an inquiry, according to reports.
Other hedge funds said to be involved include Millennium Capital Management and Maverick Capital Management, although nothing has been confirmed.
Goldman Sachs (NYSE: GS) is also said to be involved. According to the Wall Street Journal, which first broke news of the probe, "prosecutors and regulators are examining whether Goldman Sachs Group Inc. bankers leaked information about transactions, including health-care mergers, in ways that benefited certain investors, the people say."
In a letter to investors, Steven Cohen's hedge fund SAC Capital disclsoed it has received an inquiry regarding the recently disclosed insider trading investigation. The subpoena were "extraordinarily broad" and identical to the subpoenas sent to a number of investment managers, the letter stated. The subpoena does not focus on specific securities, sectors or strategies. SAC said while the subpoena doesn't shed light on whom or what the government is investigating, one focus may be the use of consultants and soft dollars.
Yesterday, two hedge funds run by former SAC Capital managers were said to be involved in the vast insider trading probe - Diamondback Capital Management LLC and Level Global Investors LP.
Ken Griffin's Citadel hedge fund received a "wide ranging subpoena", according to Fox Business Network's Charlie Gasparino. "They got a subpoena. It's the same subpoena that sources tell FOX Business Network that Steve Cohen over at SAC Capital got. It's a wide ranging subpoena and it dates back to 2008 asking for information on certain stocks. From what I understand, it's not just healthcare stocks, which has been a primary focus," Gasparino stated.
Mutual fund giant Janus (NYSE: JNS) disclosed in an SEC filing mid-day that it is part of the probe.
"Janus Capital Group Inc. has received an inquiry regarding the recently disclosed insider trading investigation on Wall Street calling for general information and intends to cooperate fully with that inquiry. Janus does not intend to provide any further updates concerning this matter unless and until required by applicable law," the company said in a statement.
Wellington Management is the other mutual fund heavyweight that has received an inquiry, according to reports.
Other hedge funds said to be involved include Millennium Capital Management and Maverick Capital Management, although nothing has been confirmed.
Goldman Sachs (NYSE: GS) is also said to be involved. According to the Wall Street Journal, which first broke news of the probe, "prosecutors and regulators are examining whether Goldman Sachs Group Inc. bankers leaked information about transactions, including health-care mergers, in ways that benefited certain investors, the people say."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- MSCI acquires First Street for $120M to expand climate risk data
- uniQure prices $225 million public offering at $45.50 per share
- Definium Therapeutics prices $700M public offering at $34 per share
Create E-mail Alert Related Categories
General NewsRelated Entities
SAC Capital, Citadel, Ken Griffin, Charles Gasparino, Steven A. Cohen, Janus Capital, Level Global Investors, Maverick Capital, Hedge Funds, Wellington ManagementSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
