lessons

  • 28 Mar 2014 at 12:42 PM

SAC Capital Throws Itself Upon The Mercy Of The Court

They’ve changed their name. They’ve given back the money. They’ve cried it out atop the fleeces. What other lessons could possibly be learned? Don’t make Steve Cohen walk up and down Park Avenue wearing a sandwich board that reads “I employ insider traders” on the front and “LOTS of ‘em” on the back.1 Read more »

From 2010 to 2014, when he was working in Evercore’s mining and metals group, Frank Perkins Hixon Jr. occasionally found himself on the receiving end of material non-public information. Sometimes it was about forthcoming acquisitions. Sometimes it was about his own company’s earnings. In both cases, FPH Jr. knew he could sweeten things for himself by trading on the 411. Naturally, he didn’t want to get fired from Evercore for securities fraud, as it would put a damper on his ability to obtain inside info, so he couldn’t be too obvious. Placing the trades in an account under his own name was obviously out. Same went for anyone with whom he shared a last name, like his mom or dad. And that’s when the lightbulb went off: Read more »

That is: keep your business cards out of the reach of said enemies and/or anyone you suspect might have a skill for drawing freehand penises. Read more »

Earlier today, Bill Hwang, the founder of the Tiger Cub’s Asia-based branch, Tiger Asia, pleaded guilty to one count of wire fraud and agreed to fork over $44 million to make allegations by the SEC of insider trading in Chinese bank stocks go away. According to Hwang, his firm “regrets the actions for which is accepts responsibility today and is grateful that this matter is now resolved.” According to SEC director of enforcement Robert Khuzami, who we would love to consider a side job writing fables for children about foxes who trade on unreleased information about clinical trials of Alzheimer’s drugs and take advantage of innocent hens,* Hwang was a very bad boy and should serve as a cautionary tale for anyone thinking about breaking the law. Read more »

During a presentation on Tuesday at which he was expected to reveal his latest bearish thesis, Mr. Einhorn, a hedge fund manager, introduced a discussion of General Motors with an ambiguous line. Mr. Einhorn, the president of Greenlight Capital, pivoted on the ticker symbol of Green Mountain Coffee Roasters, a target of his criticism last year. “If you take the CR away from GMCR, you get G.M.,” Mr. Einhorn said. Shares of General Motors plunged, before investors realized that the assessment of the automaker was positive. Mr. Einhorn emphasized the folly of taking his ideas on faith. “It doesn’t make sense to blindly follow me or anyone else into a stock,” he said as a preface to his presentation at the Value Investing Congress in Manhattan. “Do your own work. And when a successful investor shows you their work, check their work.” [Dealbook]

Why do people work on Wall Street? Some do it for the money. Some the love of the game. And some to put enough in the bank that they can one day leave the industry and finance their true passion. And, as a comprehensive survey shows, for many, that passion is dolls. Barbie dolls, cabbage patch dolls, celebrity dolls, dolls with creepy painted faces. Whether or not you’re ready to admit that to your colleagues, friends and, most importantly, to yourselves, I don’t care. What I do care about is you remembering all the accumulated wisdom you picked up on Wall Street and applying it to your new gig. And not making the same mistakes at this guy. Read more »

Here’s her thinking: Read more »

Over the last 10 months or so, the relationship between hedge fund manager Phil Falcone and his investors has not exactly been mutually satisfying. Not that they’ve been keeping a list but, if pressed to get into specifics, Harbinger Capital clients might cite a few reasons why they’ve been less than thrilled with Falcone of late such as: 1) The lackluster returns in Harbinger Capital’s flagship, which have in no way mimicked the highs of 2007. 2) That time he told reporters his investors are idiots. 3) The fact that he’s come to adopt a loose definition of the term ‘hedge,’ and put a whole lot of their money in a wireless venture that the universe seems hell bent on making sure never even has the chance to cause GPS interference. 4) The note those who requested their money back received in July, informing them that rather than getting cash, they’d be the lucky recipients of illiquid LightSquared equity. And then there would be the incident about which they really get pissy, and where things started to go down hill: 5) The time Phil choose to “loan” himself $113 million from a gated fund in order to pay personal taxes. Today, however, brings word that should do a lot to smooth ruffled feathers. On points 1-4, not much to say there. No one changes in a day. But! On point 5? Big progress. Huge. Read more »