• Avoiding Insider Trading Risks in Fundamental Investment Research
  • December 13, 2010 | Authors: Karl A. Groskaufmanis; Justin M. Ross; Audrey Strauss
  • Law Firms: Fried, Frank, Harris, Shriver & Jacobson LLP - Washington Office ; Fried, Frank, Harris, Shriver & Jacobson LLP - New York Office
  • Recent high-profile Securities and Exchange Commission cases against hedge fund managers revive the most universal question associated with insider trading regulation. For almost every "buy-side" investor, a persistent concern centers on determining when fundamental investment research touches the gray areas of insider trading law. A renewed SEC focus on "Wall Street" defendants heightens the importance of understanding when research activity that can be viewed as appropriate nonetheless may become the source of regulatory scrutiny.