SEC Probes Hedge Funds’ Fairfax Trading

Law360, New York (February 13, 2009, 12:00 AM EST) -- The U.S. Securities and Exchange Commission is reportedly investigating whether several hedge funds made illegal insider trades on Fairfax Financial Holdings Ltd. stock after being given advance notice by a research analyst.

The Wall Street Journal reported Friday that the SEC is looking into whether the hedge funds received advance notice from a research analyst named John Gwynn of Memphis, Tenn.-based Morgan Keegan Inc.

According to the newspaper, the hedge funds paid Gwynn for the early release of his report.

The Journal did not say which...
To view the full article, register now.