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Our experts frequently write blog posts about the findings of the research we are conducting.

Displaying 31-40 out of 145 results for "Mutual Fund".

Just How Risky Are Leveraged and Inverse ETFs?

(Oct 2013)

Leveraged and inverse exchange-traded funds (ETFs) are some of the most volatile securities traded in public markets. They are designed to track a specific index, except multiplying daily return of the index by a positive (leveraged) or negative (inverse leveraged) factor. The 'daily' part is important: leveraged and inverse ETFs do not track the leveraged or inverse return of the index for any period longer than a single day due to portfolio rebalancing. You can find more details about...

SEC Litigation Releases: Week in Review - October 18th, 2013

(Oct 2013)

Court Enters Final Judgment by Consent Against Defendant Ronald Baldwin, Jr.
October 17, 2013, (Litigation Release No. 22847)
A final judgment was entered against Ronald Baldwin, Jr., former CFO of JBI, Inc., for his alleged involvement in "a scheme to commit securities and accounting fraud in 2009." Previously, the SEC charged JBI, Inc. and its CEO, John Bordynuik for their alleged involvement in the scheme. Baldwin consented to the judgment which permanently enjoins him from future...

Another Non-Traded REIT Lists Shares, Revealing Losses

(Oct 2013)

Shares of non-traded real estate investment trusts (REITs) were sold in large amounts during the real estate bubble of 2005-2007. Without an observable trading price, sponsors simply fixed the share price of non-traded REITs at $10 per share. As real estate markets have collapsed and now begun to recover, it has been difficult to ascertain just how much those $10 shares have changed in value. Non-traded REIT sponsors are now required to estimate per-share net asset values, which have...

The JOBS Act and Private Placement Advertising

(Oct 2013)

As per rules adopted in line with the 2012 Jumpstart Our Business Startups Act (JOBS Act), hedge funds and other private placements can now advertise to the general public. We have been covering this issue extensively here on the blog. While many sources suggested that this would unleash an immediate flood of new marketing, several sources have noted that there has in fact been remarkably few hedge fund advertisements so far.

Why? There could be several reasons. The first is that while the...

Fidelity to Launch Mutual Fund Based on Hedge Fund Strategy

(Oct 2013)

We see it again and again: complex investment strategies packaged into traditionally conservative investments. We have seen corporate debt linked to exotic derivatives positions (structured products), exchange-traded products linked tocomplex futures positions (commodities and volatility ETPs), variable annuities linked to options strategies (structured product based variable annuities), and even certificates of deposit with complex payoff structures (structured CDs). Now, we are seeing more...

SEC Litigation Releases: Week in Review - October 11th, 2013

(Oct 2013)

Previously Unknown Insider Traders in Heinz Agree to $5 Million Settlement
October 10, 2013, (Litigation Release No. 22841)
According to the complaint, Rodrigo Terpins traded on nonpublic information concerning H.J. Heinz that he learned from his brother, Michel Terpins. Rodrigo Terpins made his trades through "a Cayman Islands-based entity named Alpine Swift that holds assets for one of their family members." The Terpins brothers and Alpine Swift, which was named as a relief defendant, have...

Volume of SEC Litigation Releases over Time

(Oct 2013)

Here at SLCG, we have spent a lot of time compiling and summarizing the SEC's Litigation Releases each Friday. You can find all of those weekly summaries on our blog -- 91 and counting! -- but we noticed that last week had a lot more Litigation Releases than usual. We also noticed the same thing at the end of last September. We wondered if there was a pattern here.

Being nerds, we wrote a program to count all of the SEC's Litigation Releases over the past 15 years. We aggregated them monthly...

Trouble in Paradise: UBS Puerto Rico Bond Fund Investors Hit Hard

(Oct 2013)

Despite a 2012 settlement agreement with the SEC, UBS Puerto Rico continues to face new allegations regarding its sales practices of tax-advantaged closed-end funds. While UBS Puerto Rico did not admit wrongdoing when it settled with the SEC, an SEC statement on the matter said "UBS Puerto Rico denied its closed-end fund customers [...] accurate price and liquidity information, and a trading desk that did not advantage UBS's trades over those of its customers." At the time of the SEC...

Peligro en la Isla del Encanto: Inversionistas de UBS Puerto Rico Sufren Cuantiosas Pérdidas

(Oct 2013)

Hace más de un año, la Comisión de Valores y Bolsa de los Estados Unidos (SEC, por sus siglas en inglés) penalizó a la unidad puertorriqueña de UBS. La SEC acusó a UBS Puerto Rico (UBS PR) de encubrir la crisis de liquidez que afectaba a un grupo de sus fondos llamados Fondos de Puerto Rico. La investigación por parte de la SEC resultó en un acuerdo extrajudicial mediante el cual UBS PR se comprometió a pagar $26.6 millones de dólares a los inversionistas afectados. Hoy en día, UBS PR se...

SEC Litigation Releases: Week in Review (Part II) - October 4th, 2013

(Oct 2013)

SEC Obtains Asset Freeze and Other Emergency Relief in Ponzi Scheme Targeting Investors in Japan
October 3, 2013, (Litigation Release No. 22832)
The SEC was granted a temporary restraining order, asset freeze and other emergency relief againstEdwin Yoshihiro Fujinaga and his company MRI International, Inc.. Fujinaga allegedly raised more than $800 million from investors through MRI, an allegedly "fraudulent Ponzi scheme designed to misappropriate money from investors. "The defendants...

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