As The Wizard of Lies details, in 1962 Madoff was in his early twenties, just starting out as an investment manager trading OTC stocks.
By opposing disclosure of the risks to investors personal trading by portfolio managers poses, as well as disclosure of portfolio manager personal trading records and, when all else fails, invoking the attorney-client privilege to prevent investors from learning of illegal personal trading, the mutual fund industry has been able to maintain the illusion that such trading is rare and investors are not being harmed.
FORBES: Letter to Editor of BusinessWeek Re: Mutual Fund Personal Trading ( July 1, 1998)
If the asset manager is trading directly through DMA they should have the same surveillance tools as a broker.
FORBES: Monitoring Traders Trade: Sell-Side, Buy-Side or Asset Managers
Within large mutual fund organizations, only in- house legal counsel is in a position to monitor manager personal trading compliance with the code of ethics.
The night before trading began, a manager at Capital Research told a Morgan Stanley official that the deal's pricing was "ridiculous, " according to one person familiar with the discussion.
WSJ: Morgan Stanley Was 'Driver' on Facebook's Wild IPO Ride
It would be hard for us as a US-based manager to have trading relationships all over the world, and purchase all of those individual securities.
James Cordier, portfolio manager, Liberty Trading, said a stronger U.S. dollar versus the euro and yen likely played a part in pressuring copper and other commodities.
FORBES: FOCUS: Copper Retreat Temporary; Outlook Remains Firm
In this technique, a manager devises a trading strategy, then uses computers to rake through the historical returns of the financial markets to see how well the strategy would have done.
John Wheeler, senior manager of equity trading at American Century mutual funds, figures the current system imposes a 0.5% trading cost (one-way) on big orders, between commissions, spreads and the impact such orders themselves have on prices.
He also is the manager of the Tozzi Trading Center at University of Michigan's Ross School of Business in Ann Arbor, Mich.
The SEC should establish clear minimum standards regarding personal trading that every mutual fund money manager must meet and be more diligent in monitoring compliance with these standards during its inspections of managers.
FORBES: Early Warnings of Mutual Fund Illegalities (October 1, 2003 )
"It's 80 degrees here, which is crazy, because nearly everyone I'm connected with is going through something completely different, " said Stephen Solaka, managing partner at Belmont Capital Group in Los Angeles, a portfolio manager active in options trading.
Already, two former SAC Capital traders and an analyst at the hedge fund have pleaded guilty to insider trading, and a former portfolio manager Michael Steinberg has been named as an unindicted co-conspirator, but is yet to be charged.
FORBES: Why Wall Street Won't Let Cohen's SAC Capital Hang: Street Whispers
Lawyers for Galleon Group founder Raj Rajaratnam head to court Tuesday afternoon to persuade a federal district court judge in New York to suppress evidence from government wiretaps that led to criminal insider trading charges against the hedge fund manager.
FORBES: Galleon Group Lawyers To Argue Court Should Toss Evidence From Wiretaps
"I wanted to go to North Korea and because it was not yet mapped I decided to start mapping so I could at least see how easy it would be to travel within the country, " Sebastiaan van Oyen, who works as a risk manager for a financial trading firm in Sydney, told the BBC.
But even being a hedge fund manager at FrontPoint (owned by Morgan Stanley) was not enough, Skowron took to insider trading to make sure he was the best hedge fund manager out there.
Paul Gretton, team manager for the East Midlands Trading Standards' Scambusters Unit, said there could be further victims who feel too embarrassed to come forward.
"The people in the Tokyo area were momentarily thrown off, " said Tetsuya Kudo, deputy manager in the proprietary-trading department of midsize brokerage Yamawa Securities Co.
Early on Gandur gravitated to francophone Africa and became manager of Philbros' African oil trading operations.
Bloomberg reports the funds investors see a Nov. 20 charges against a former portfolio manager, Matthew Martoma and his trading of Elan ( ELN) and Wyeth shares as concerning because they indicate Cohen may have been a participant in the alleged insider trading.
FORBES: Why Wall Street Won't Let Cohen's SAC Capital Hang: Street Whispers
The analyst pitches an idea to the portfolio manager and then it goes to the trading desk.
FORBES: Advent Software Tracks Investment Management From Idea To Earnings
"The good thing is that nothing went really seriously wrong--apart, of course, from the economy at large, " says John Bates, general manager of Progress Software, which sells trading risk control systems.
Can you imagine a general manager such as Ted Thompson or Bill Belichick trading these picks for any player?
Bundled services relationships where a single firm provides asset allocation, manager selection, performance reporting, custody and trading are fraught with dangers.
To claim a magical five-star rating from Morningstar or to win a year-end bonus, a manager might ignore the tax implications of frequently trading stocks.
The insider-trading type was someone like Adam Smith, the Galleon portfolio manager from Harvard.
Craig Pinckney, 34, a shipping manager at a Connecticut environmental laboratory, seriously considered trading in his Alienware Area 51 tower (complete with a cyborg-green paint job) for the new Doom 3 machine, but decided he could just upgrade his processor and video card instead.
But he traded that privilege for profit and provided information to Raj Rajaratnam, a hedge fund manager now serving an 11-year sentence for insider trading.
Now the person who needs monitoring is the person who is trading, whether it is a buy-side trader, an asset manager or a hedge fund.
FORBES: Monitoring Traders Trade: Sell-Side, Buy-Side or Asset Managers
Barrow, 60, is sticking to the formula he has used for nearly four decades: Pay some attention to the prospects for a company, just as a growth manager would, but don't buy unless it is trading at a low multiple of its earnings or book value.
应用推荐