Until recently, having an 'edge' was a coveted trait on Wall Street. After the federal indictment on Thursday of billionaire investor Steven Cohen's hedge fund for insider trading, it is becoming a four-letter word.
Reuters reports that in painting a picture of a cutthroat culture at SAC Capital Advisors, U.S. prosecutors used the word 'edge' 14 times to describe the way traders and analysts allegedly went to great lengths to obtain inside information and insights that no one else on Wall Street had about publicly traded companies.
In the meantime, Bloomberg reports that the evidence of insider trading at SAC Capital includes court-authorized wiretaps, a U.S. prosecutor said at the $14bn hedge fund’s arraignment in federal court in Manhattan.
'The discovery will be voluminous, including a large number of electronic recordings, including electronic messages, instant messages, court-authorized wiretaps and consensual recordings', Assistant U.S. Attorney Antonia Apps told U.S. District Judge Laura Taylor Swain Friday about the pretrial evidence-gathering process. 'In short, a tremendous volume'.
Prosecutors didn’t specify whether the wiretaps were directed at SAC founder and owner Steven Cohen or any other SAC employee. Cohen wasn’t in court Friday for the hearing that lasted about 15 minutes.