Hedge Funds Marketing Insider Trading
Funds See Insider Trading Probe as Marketing Opportunity
The "expert network" insider trading probe has ensnared some big-name hedge funds and mutual funds--the likes of SAC Capital, Citadel, Janus and Wellington Management. This is something competitors see as an opportunity.
Quantitative funds in particular think a marketing opportunity has been handed to them, Fortune reports. They have an interesting product story to tell as the investigation unfolds. These guys, after all, do not use new-age independent research or traditional research. They rely on their computer-driven models, so they are virtually immune to these sorts of scandals--or so they say.
Larger hedge funds and funds of funds also have an interesting pitch: they have highly developed compliance departments that make illegal insider trading much less likely. This has been a marketing point for a while for some firms. But it's nothing like a little scandal to inject a bit of urgency into their message. Source