SEC Probing Two Hedge Funds: Report

[cory777]

Source: Reuters

(Reuters) - The U.S. securities regulator is probing hedge funds Appaloosa Management LP and Carlson Capital LP for certain trades, the Wall Street Journal said, citing people familiar with the matter.

The U.S. Securities and Exchange Commission (SEC) has scanned the trades made by Appaloosa, a $13 billion hedge fund, when Wells Fargo & Co agreed to buy Wachovia Corp in 2008, the Journal said citing people familiar with the matter.

Appaloosa is cooperating with the probe, the people told the paper.

SEC has also scrutinized trades by the Dallas-based Carlson, which manages $4.9 billion in investments, relating to four secondary stock offerings made between late 2007 and the middle of 2009, the paper said, citing a person familiar with the matter.

Read more: http://www.nytimes.com/reuters/2010/03/25/business/business-us-hedgefunds-sec-probe.html?_r=1&dbk

[ShockediSay]

1. The ways these 'investment' types make money are three fold

a) inside information

b)heavy duty commissions/fees

c) selling shit for big commissions