Report: Hedge Fund Knew About Seven West Media Sale Before Everyone Else

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A hedge fund was tipped-off about private equity outfit Kohlberg Kravis Roberts & Co’s sale of its stake in Seven West Media last month, a source reportedly told the Australian Financial Review.

According to the AFR, short-selling positions in Seven West jumped in the three days before the sale of the $265 million stake, which was announced on May 21 this year.

An hour-and-a-half before the market closed Seven West’s share price fell. The sale was announced after the close, and the next day shares continued to fall.

The Fin’s source reportedly said the Hong Kong-based hedge fund knew about the block trade of KKR’s 12% stake early enough to short-sell the stock for a multi-million dollar profit.

An institutional investor, according to the Fin’s report, has made a complaint to the Australian Securities & Investments Commission.

Read more at the Fin.

Now read: STOCKS STAGE ANOTHER BIG RALLY AHEAD OF THE FED: Here’s What You Need To Know

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