Money Management Executive Latest News

The Securities and Exchange Commission has filed a complaint against the $43 million hedge fund, Groundswell Partners, for doctoring financial statements with the intention of misleading investors, The Wall Street Journal reports.

Two leading Democrats on the Senate Judiciary Committee are demanding explanations from Supreme Court nominee Samuel A. Alito as to why he did recuse himself from a 2002 case involving Vanguard since he held at least $390,000 in the company's funds, The Globe reports. Alito promised the Senate in 1990 that he would remove himself from any such case since he owned Vanguard mutual funds.

For the past five years, Fidelity's Magellan Fund has been scraping the bottom of the performance heap in Fidelity's pool of products, ranking 125 out of 142, MarketWatch charges in a recent commentary. Assigning a small-cap expert, Harry Lange, to take over the fund will not revive it, MarketWatch warns.

At a conference organized by the New York State Society of Public Accountants, Richard Marshall, a lawyer at Kirkpatrick & Lockhart Nicholson Graham LLP, spoke about hedge fund fraud cases in the U.S. and the fact that $1 of every $1,000 in hedge fund assets was subject to fraud in the past year, HedgeWorld News reports.

Old Mutual L.L.C. of London is renaming the 18 PBHG funds after itself, stripping the PBHG banner from the funds in light on remaining negative connotations surrounding Gary Pilgrim and Harold Baxter from the mutual fund trading scandal, the Philadelphia Inquirer reports. Last year, Old Mutual renamed Pilgrim Baxter & Associates as Liberty Ridge Capital Inc.

At the inaugural CCOutreach National Seminar, held on Monday at Securities and Exchange Commission offices, SEC Chairman Christopher Cox spoke about compliance issues faced by chief compliance officers, and the role these compliance professionals play within in their firms.

AST Trust Company, a division of American Stock Transfer & Trust Company, has announced the launch of 10 ETF collective funds for retirement plans. AST is offering the ETFs as collective funds, which operate like mutual funds and offer same-date settlement, so that 401(k) and other retirement plan participants can invest in them like any other investment option.

Refco's futures arm may bring in more than $1.2 billion for the now bankrupt commodities trading firm, The Times of London reports.

Morgan Stanley has distributed $50 million in fund restitutions to investors who bought funds between Jan. 1 2000 and Nov. 17, 2003 and were not told about incentives brokers received for selling certain funds or the higher fees they earned through B shares, Compliance Reporter reports.

The U.S. Chamber of Commerce filed a legal brief with the U.S. Court of Appeals for the District of Columbia Circuit Monday against the Securities and Exchange Commission's 2004 rule requiring independent chairman, Dow Jones reports. The Chamber says the SEC failed to adequately consider the costs and alternatives and did not follow federal procedures in adopting the rule.