Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hedge Fund and Insider Trading News: Visium Asset Management, Soros Fund Management, Citadel, Casa Systems Inc (CASA), Andeavor (ANDV), and More

SEC Charges Hedge Fund with Insider Trading, Inflating Fund Returns (MarketWatch)
The Securities and Exchange Commission settled charges on Tuesday with Visium Asset Management LP, a New York-based hedge fund advisory firm, for insider trading by its privately managed hedge funds and portfolio managers and inflating fund returns by mismarking assets values. The firm’s CFO, Steven Ku, also agreed to settle charges that he failed to respond appropriately to red flags that should have alerted him to the asset mismarking. Visium agreed to settle the SEC’s charges by disgorging illicit profits totaling more than $4.7 million plus interest and paying a penalty of more than $4.7 million.

Soros Fund Management Hires ex Citadel Trader: Sources (Reuters)
BOSTON (Reuters) – Lucy DeStefano, former head of trading at hedge fund Citadel’s Aptigon unit, is set to join Soros Fund Management later this year, two sources familiar with the matter said. Soros Fund Management is the $26 billion family office of billionaire philanthropist George Soros, and the firm’s investments as well as its staffing decisions are closely watched in the $3.2 trillion hedge fund industry. At Soros, DeStefano will report to head of trading Jessica Murphy and join the firm’s trading team to focus on systematic trading strategy for macro investments.

Insider Trading Back

Luis Louro /

ValueAct Builds $1.2 Billion Stake in Undervalued Citigroup (Bloomberg)
Activist fund ValueAct Capital Management has amassed a $1.2 billion stake in Citigroup Inc., arguing that the bank long seen as trailing its sector is positioned for success by providing the “plumbing” that multinational corporations need to operate. Jeff Ubben’s San Francisco-based hedge fund, which disclosed a $75 million stake in the bank in February, has been building those holdings over the past four or five months, according to a quarterly investor letter obtained by Bloomberg Monday. ValueAct said it’s continuing to add to its position. “Based on the share price at which we have been able to accumulate our stake in the company, we do not believe the market views Citigroup in the same way we do,” ValueAct said in the letter.

Hedge Funds are Beating the Market For the First Time in 10 Years (CNBC)
After nearly a decade of underperformance, hedge funds are actually faring better than the stock market in 2018. Thanks to higher volatility, the rally in energy prices and some well-placed bets in fixed income, managers in the $3.2 trillion hedge fund industry posted a 0.38 percent gain in April that brings the total return for the year to 0.39 percent, according to industry tracker HFR. The HFRI Fund Weighted Composite Index finished April narrowly ahead of the S&P 500, which posted a loss, including dividends, of 0.38 percent through the first four months.

British Hedge Fund Caius Challenges Capital Treatment of UniCredit Notes (Reuters)
LONDON/MILAN (Reuters) – British hedge fund Caius Capital has asked the European Banking Authority (EBA) to open an investigation into the regulatory treatment of a complex financial instrument as UniCredit’s (CRDI.MI) core capital. In a May 3 letter seen by Reuters, Caius asked the EBA to examine a 2.98 billion euro ($3.46 billion) convertible bond issued in 2008, which it said had been misclassified as Common Equity Tier (CET) 1, or the best-quality capital held by a bank and a key measure of its financial strength. Reclassification would reduce UniCredit’s CET 1 ratio by about 50 basis points, a source familiar with the fund’s thinking told Reuters.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.