Bonanza Master Fund LP
Bonanza Master Fund LP | Notes
(http://HedgeFundBlogger.com) The following piece on Bonanaza Master Fund LP is being published as part of our Hedge Fund Tracker Tool, our daily effort to track hedge funds in the industry.
The problem I have with the story below is it was found on HedgeFund.net as saying "Dallas Hedge Fund Traded Improperly, SEC said" You then read the story only to learn that the individual settled with the SEC and admitted no wrongdoing. However, the person was never found guilty and may have simply decided to move on with his life instead of battling the SEC for 3 years...yet the title assumes he was guilty. This is the worst part about financial and investment regulation these days - the accused are instantly seen as guilty. I'm not familiar with this case so he may in fact have been guilty, but that is not the point. From this information we don't know what happened yet judgement is passed by the media and spread around the industry.
Resource #1: A Dallas hedge fund charged improper trading has settled its case with the SEC. Brian Ladin, a former analyst at Bonanza Master Fund, traded on insider information, according to the SEC. Ladin in 2004 broke the law in a private investment in a public equity transaction for Radyne ComStream, the SEC said.
Using nonpublic, PIPE information, Ladin presented the hedge fund with his idea to take a short position in Radyne ComStream. The analyst then represented the hedge fund as not holding a short position in the telecommunications company.