SAC Capital Beats Prem Watsa in Court

SAC Capital beats Prem Watsa in court. Fairfax Financial brought a case against SAC Capital, Dan Loeb’s Third Point, and Jim Chanos’ Kynikos five years ago. A NJ judge dismissed the five-year old case against SAC Capital. The judge hasn’t decided yet on Dan Loeb’s and Jim Chanos’ motions to dismiss. A few months ago it was revealed that Dan Loeb said “Prem Watsa bend over the hedge funds have something special for you” in an old email.

Jim Chanos on china map

Here is what Reuters said about SAC Capital’s win:

In the lawsuit, Fairfax alleges the hedge funds worked together with industry consultants to persuade financial reporters to write negative stories about Fairfax from 2003 to 2006 in an attempt to “crush” the company’s stock. The insurer claims the hedge fund defendants were shorting, or betting against, Fairfax’s stock and hoped to profit from a decline in the share price.

SAC Capital, throughout the litigation, has argued that it traders rarely shorted Fairfax and had little communication with the other hedge funds. The judge, in ruling for SAC Capital, clearly accepted the hedge fund’s argument.

“Plaintiffs pointed to no direct evidence which establishes a conspiracy of which SAC was part of,” said Judge Hansbury. “Most tellingly, is SAC’s trading reports in Fairfax securities. The fact that at no time did SAC trade similarly to its alleged Enterprise Members is baffling, and without explanation by plaintiffs.”

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!