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...
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