Monday, January 30, 2006

More Heat On Hedge Funds

Businesses has an article that claims that hedge funds are under scrutiny for insider trading, and that there will be a flurry of insider trading cases against hedge funds this year.

While the article has an "anti-fund" slant, if the information is correct, we can expect to see a new line of insider trading cases this year - and hedge funds are not going to be the only targets. The concept of using an investment in a private placement to obtain leverage and information upon which to trade is the new theory.