Amusingly, it wasn't 6 months ago that Pequot managed to capture the much-coveted "probably won't go under" award (technically the "Pulliamp-Strasburg Likely Survivors Amid Turmoil in the Industry" award) issued by the Wall Street Journal to the most middling hedge-fund. More amusingly, it only three months and change from there before Samberg had "...concluded that Pequot can no longer stay in business."
In no time at all Pequot Capital Management became one of those "repeat offenders" here on Dealbreaker. You know the type: constantly tarnishing these pages with tales of woe, hints of scandal, long missives and tedious adéus of every kind.
But now, new news brought to the forefront by Pequot hastens my return to these pages- owing to my minor, but entertaining connection to the firm, I gravitate to writing projects that include it.* Address your hate mail accordingly.
Trades [by Pequot] linked to Google Inc., Cox Communications Inc., International Securities Holdings Inc., Premcor Inc. and dozens of other companies prompted surveillance units policing U.S. exchanges to make the referrals to the Securities and Exchange Commission, according to agency records obtained by Bloomberg News. Thirty-six reports flagged possible insider trading. Four indicated possible manipulation and four were labeled "other."
"The numbers would indicate they had trading that closely preceded 36 material events" said Bradley Bennett, a partner at Baker Botts in Washington and a former SEC investigator who focused on insider-trading cases.
No surprise there. Neither, sadly, is the fact that notices on Pequot go back to 2005 or earlier.
I bet there is a press release on their website. Oh. Darn.
Pequot Trading in Google, Cox, Premcor Sparked Warnings to SEC [Bloomberg]
* Related only tangentially, a conversation that took place on stage at a finance panel discussion a few weeks ago during the half-time break:
Panelist #1: Isn't that (insider trading) what that one firm is being accused of? (She really asked this. And the mic was still on.)
Panelist #2: Which firm?
Panelist #1: The hedge fund?
Panelist #2: Uh, not sure.
Panelist #1: (Detecting evasion): The one in Connecticut? (No, I'm not kidding).
Panelist #2: Um... maybe?
Panelist #1: They have the same name as that shitty French car company.
Panelist #2: Mercedes? (Again, not kidding).
Panelist #1: YES! No, wait....
Panelist #1: YES! That's it!
EP: There's a hedge fund named Peugeot?
Panelist #1: Yes. Well, like it. Named like it.
- long pause -
Panelist #1: That's it exactly! YES!
French car company. In retrospect, she was pretty close actually. There was an hour left in the second half of the panel though.