Segantii Capital Management Ltd., its founder Simon Sadler and former trader Daniel La Rocca have been prosecuted by Hong Kong securities regulators for insider trading, which is the most eye-catching in Hong Kong.BambetcasinonodepositbonusOne of the financial prosecution cases.
According to a statement from the Hong Kong Securities and Futures Commission, they conducted insider trading on the shares of a company listed on the Stock Exchange of Hong Kong Limited before a big deal in June 2017. Sadler and La Rocca did not have to reply when they appeared in Hong Kong Eastern Magistracy on Thursday, and the case was adjourned to June 12, the CSRC's statement said.
The charges mark the latest regulatory hassle facing Segantii, once a star hedge fund in Asia. In December, South Korean regulators imposed 14 per cent on Segantii for "certain hedging transactions"BambetcasinonodepositbonusA fine of 80 million won (US $1.08 million).
"Segantii intends to actively defend itself in Hong Kong against this accusation," a company spokesman said. Segantii CEO Kurt Ersoy declined to comment. Sadler and La Rocca didn't immediately respond to requests for comment.
The SFC said Sadler and La Rocca had been released on bail pending the next hearing. They have to pay bail of HK $1 million (US $128000) and HK $500000 respectively. The SFC also requires them to notify the SFC 24 hours before leaving Hong Kong and provide complete itinerary and contact details. They must reside at the address provided to the SFC and notify the SFC 48 hours in advance of any change in their residential address and / or contact details while they are overseas. Nor shall they have direct or indirect contact with any prosecution witness.
Sadler, a former trader for Dresdner Kleinwort Wasserstein and Deutsche Bank, founded the company in Hong Kong at the end of 2007 for $26.5 million. He built Segantii into a regional giant with offices in London, New York and Dubai, traded around the world, and focused on Asia-Pacific stocks and stock-linked securities.
Fund rate of return
As of march, Segantii's annualised return since its inception was 12%, more than double the performance index that Eurekahedge tracks its Asian peers. The company reported only slight annual losses in 2013 and 2023.
The assets of the Segantii Asia Pacific Equity Multi-Strategy Fund fell to about $4.8 billion by the end of January from nearly $5.9 billion in March 2023, according to a person familiar with the matter.
La Rocca will join JPMorgan as head of cash single-stock trading in the Asia-Pacific region, people familiar with the matter said in February. But a person familiar with the matter later said that his joining JPMorgan was stillborn, but did not say why.
JPMorgan told hedge fund clients last week that La Rocca did not join the company for personal reasons, according to a person familiar with the matter. A representative of the New York-based bank declined to comment.
La Rocca has worked with the company for nearly 10 years and served briefly at Evo Capital Management in 2022, according to the public register on the CSRC's website.