Editing Hedge fund (section)

===Links with analysts===
In June 2006, prompted by a letter from [[Gary J. Aguirre]], the [[U.S. Senate Committee on the Judiciary|U.S. Senate Judiciary Committee]] began an investigation into the links between hedge funds and independent analysts. Aguirre was fired from his job with the SEC when, as lead investigator of [[insider trading]] allegations against [[Pequot Capital Management]], he tried to interview [[John J. Mack|John Mack]], then being considered for [[chief executive officer]] at [[Morgan Stanley]].<ref>{{cite news |url=https://www.washingtonpost.com/wp-dyn/content/article/2006/06/28/AR2006062801909.html |title=Scrutiny Urged for Hedge Funds |work=Washingtonpost.com |date=29 June 2006 |access-date=14 August 2010 |archive-url=https://web.archive.org/web/20121111114108/http://www.washingtonpost.com/wp-dyn/content/article/2006/06/28/AR2006062801909.html |archive-date=11 November 2012 |url-status=live |df=dmy-all }}</ref> The Judiciary Committee and the [[US Senate Finance Committee]] issued a scathing report in 2007, which found that Aguirre had been illegally fired in reprisal<ref>Liz Noyer, [https://blogs.forbes.com/streettalk/2010/05/27/scales-of-justice-look-skewed-for-rajaratnam-samberg/ "Scales Of Justice Look Skewed For Rajaratnam, Samberg"] {{Webarchive|url=https://web.archive.org/web/20110711015900/http://blogs.forbes.com/streettalk/2010/05/27/scales-of-justice-look-skewed-for-rajaratnam-samberg/ |date=11 July 2011 }} ''Forbes'' magazine (27 May 2010). Retrieved 21 February 2011</ref> for his pursuit of Mack, and in 2009 the SEC was forced to re-open its case against Pequot. Pequot settled with the SEC for US$28&nbsp;million, and [[Arthur J. Samberg]], [[chief investment officer]] of Pequot, was barred from working as an investment advisor.<ref>[http://www.whistleblower.org/press/press-release-archive/633-sec-settles-with-aguirre "SEC Settles with Aguirre"] {{Webarchive|url=https://web.archive.org/web/20110417223718/http://www.whistleblower.org/press/press-release-archive/633-sec-settles-with-aguirre |date=17 April 2011 }} [[Government Accountability Project]] (29 June 2010) Retrieved 21 February 2011</ref> Pequot closed its doors under the pressure of investigations.<ref>Larry Edelman and Saijel Kishan, [https://www.bloomberg.com/apps/news?sid=adzQGDVos7OQ&pid=20601087 "Pequot Capital to Shut Amid SEC Insider-Trading Probe"] Bloomberg News. (28 May 2009). Retrieved 19 February 2011</ref>

The systemic practice of hedge funds submitting periodic electronic questionnaires to stock analysts as a part of market research was reported by ''[[The New York Times]]'' in July 2012. According to the report, one motivation for the questionnaires was to obtain subjective information not available to the public and possible early notice of trading recommendations that could produce short-term market movements.<ref name=NYT71512>{{cite news |title=Surveys Give Big Investors an Early View From Analysts |url=https://www.nytimes.com/2012/07/16/business/in-surveys-hedge-funds-see-early-views-of-stock-analysts.html |access-date=16 July 2012 |newspaper=The New York Times |date=15 July 2012 |first=Gretchen |last=Morgenson |quote=The questions are vague but collectively give us a good sense of the analyst’s overall sentiment towards the company," the report concluded. "We find that this sentiment manifests itself in future analyst upgrades |archive-url=https://web.archive.org/web/20120716114550/http://www.nytimes.com/2012/07/16/business/in-surveys-hedge-funds-see-early-views-of-stock-analysts.html |archive-date=16 July 2012 |url-status=live |df=dmy-all }}</ref>