Question
Two Affiliates of a hugely successful hedge fund, SAC Capital Advisor, were charged with insider trading by the SEC. CR Intrinsic investors and CIGNA capital
Two Affiliates of a hugely successful hedge fund, SAC Capital Advisor, were charged with insider trading by the SEC. CR Intrinsic investors and CIGNA capital management apparently relied on "expert networks" through which, allegedly, people with information funnel it to traders. The biggest charge involved a doctor who had passed information to a trader regarding problems with a new drug that targeted Alzheimers disease. After the information was passed, around $1 billion worth of shares of two pharmaceutical companies related to the drugs were sold before the drug information was released to the public. The drug was still going through scientific trials, and the results had not been finalized. The doctor was a part of that project. How do you think this case turned out? [Securities and Exchange Commission v. Sigma Capital Management, LLC, et al., C.A. No. 13-civ-1740 (2013).]
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