Famous Hedge fund billionaire Steven Cohen, the founder of SAC Capital, one of the most followed hedge fund managers, said in a sworn testimony earlier this year and called the rules on insider trading “very vague”, according to Reuters.
Steven Cohen rarely speaks publicly and he hardly shares his opinions on sensitive topics. He always relies on his lawyer to determine whether something constitutes insider information. Cohen said: “The answer is when you’re trading securities, it’s a judgment call…Whatever the compliance manual says, it probably doesn’t take into account every – every potential situation.”
Cohen believes the rules that depend on “whether the information will move a stock, hurt another trader or can be obtained through another source” are “very vague” Reuter writes.
Cohen’s complaint might because his $14 billion firm continues to draw attention from U.S. authorities in insider trading. He said whether or not it’s a material insider information often depends on the circumstances. (Click here to see the full article)