Breaking News: Here are Other Hedge Funds That Also Sold Elan and Wyeth

Mathew MartomaMathew Martoma was charged with insider trading today. “This is an insider trading case where affiliated investment advisers and their hedge funds made over $276 million in illegal profits or avoided losses in July 2008 by trading ahead of a negative public announcement involving the clinical trial results for an Alzheimer’s drug being jointly developed by Elan Corporation, plc (“Elan”) and Wyeth,”  SEC says in its complaint.

SEC alleges that Dr. Sidney Gilman provided confidential information to Mathew Martoma who then “caused hedge fund portfolios managed by CR Intrinsic as well as hedge fund portfolios managed by an affiliated investment adviser (“Investment Adviser A”) not only to liquidate their combined long positions in Elan and Wyeth, worth over $700 million, but also to take substantial short positions, eventually selling over $960 million in Elan Corporation (NYSE:ELN) and Wyeth securities in just over a week”

Who is “Investment Advisor A”? You may think that it is Steven Cohen’s SAC Capital but our database came up with different potential names. We searched for hedge funds that both owned Elan Corp (NYSE:ELN) and Wyeth at the end of June 2008 and sold their holdings by the end of September 2008. Our 13F database brought the following 5 hedge funds that did that (this doesn’t mean that they engaged in illegal insider trading though, however SEC should nevertheless have checked whether they had any connections):

1. Carlyle-Blue Wave Partners Management (see filings)

2. CR Intrinsic: you already know about this

3. Parallax Fund: see filings

4. Pequot Capital Management: Samberg’s hedge fund had an unrelated “alleged” insider trading incident in the past but settled the charges without admitting or denying anything (see filings).

5. Trellus Management Company: see filings

Again, this doesn’t mean that any of these hedge funds were engaged in illegal insider trading. There are hundreds of hedge funds buying and selling stocks. Some of these hedge funds may coincidentally sell these stocks at around the same time Mathew Martoma did.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!