The big hedge fund news this morning was a report in the WSJ that the SEC is probing (without charging) SAC Capital over trades CR Intrinsic, one of its trading units, made in Cougar.Cougar Biotechnology is a development stage biopharmaceutical company that focuses on oncology (in 2009, it had compounds in development for the treatment of prostate cancer, as well as breast cancer and multiple myeloma). Johnson and Johnson bought the company for $1 billion on May 21, 2009 — a deal that sent shares in Cougar soaring 16%.
Details about SAC’s ownership of Cougar shares ahead of the deal and its relationship with MedaCorp, an expert-network that’s owned by an investment bank that acted as a financial advisor to Cougar, are explained here.
But there’s another interesting detail in the WSJ’s report about the SEC’s Cougar probe —
Regulators also have examined trading around the Cougar takeover by other hedge funds, including Stanley Druckenmiller’s Duquesne Capital Management and [Raj Rajaratnam’s] Galleon Group. It is unclear whether the examinations are continuing.
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