October 21, 2008
Overview of Side Pockets In general hedge fund side pocket investments are illiquid investments which the hedge fund manager places into a side pocket account. Mechanically the side pocket account is simply an entry on the hedge fund’s books which is tracked separate from the liquid, non side pocket investments. The structure is flexible so [...]
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October 21, 2008
What are PIPE transactions? The SEC has defined a PIPE transaction as follows: “PIPE” stands for “private investment in public equity.” In a PIPE offering, investors commit to purchase a certain number of restricted shares from a company at a specified price. The company agrees, in turn, to file a resale registration statement so that [...]
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Hedge Fund Analyst Fined for Insider PIPE Trading
October 21, 2008According to a SEC litigation release, a hedge fund analyst was fined $317,000 for engaging in insider trading with regard to a PIPE investment. PIPE transactions are subject to close scrutiny from the SEC. In this instance the fund which the analyst worked for established a short position in a company which was completing a [...]