{"id":"ci029c6201c0002795","isDetailPage":true,"objectType":"ContentArticle","originalPublicationTimestamp":"2022-03-18T18:00:00Z","path":"/2022/03/caas-capital-first-call","publicationTimestamp":"2022-03-18T18:00:00Z","title":"When Being One Of—If Not The—First Call A Banker Makes Is Not Such A Great Thing","viewProperties":{"viewMeta":{"suppressContentRecommendations":false,"showLimitedSiteFooter":false,"disableSiteHeader":false,"disableSiteFooter":false,"suppressDisplayAds":false},"analyticsModel":{"title":"When Being One Of—If Not The—First Call A Banker Makes Is Not Such A Great Thing","exclusiveContentType":"free","sanitizedTitle":"When Being One OfIf Not TheFirst Call A Banker Makes Is Not Such A Great Thing","pageType":"Article Page","mavenPageType":"article","sectionPath":"Hedge Funds","parentSectionName":"Hedge Funds","authorName":"Jon Shazar","author":"tm-ci023cf8a7000927dc","videoAuthorName":"","videoTitle":"","publicationQuarter":"2022Q1","trackedRichTermNames":"","originalPublishDate":"2022-03-18"}},"commentsEnabled":true,"dek":"It’s when bragging about it becomes Exhibit A.","disqusId":"6e3340be-a610-11ec-9820-02ed0d85f8a5","isCanvas":true,"primaryImage":{"altText":"(Getty Images)","isReadonlyContent":false,"title":"Morgan Stanley Reports 55 Percent Increase in Quarterly Profits","defaultCaption":"(Getty Images)","format":"jpg","bytes":846832,"primaryPhotoId":"ci023cf8acf00b25f5","createdTimestamp":"2019-01-14T18:00:48Z","primaryContentSiteId":"cs02394295300027a8","height":2000,"cloudinaryVersionId":1547488847,"publicId":"MTYxMjc3MTA3Nzg3NjA1NDkz","objectType":"ContentPhoto","width":3000,"migrationId":"Photo:220576","authorProfileId":"ci023cf8a6600027dc","createdPrincipalId":"up023aab5cd000250a","id":"ci023cf8acf00b25f5","primarySiteId":"cs02394295300027a8"},"primaryImageId":"ci023cf8acf00b25f5","primarySectionIds":["ci023cf8a5d00027dc"],"sectionIds":[["ci023cf8a5d00027dc"]],"slug":"caas-capital-first-call","teaser":"It’s when bragging about it becomes Exhibit A.","hasGallery":false,"associatedRichTerms":[{"id":"ci023cf8a9f00227dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:49:02Z","path":"/tag/insider-trading","publicationTimestamp":"2019-01-14T17:49:44Z","title":"insider-trading","commentsEnabled":true,"disqusId":"34c44b9d-1826-11e9-97c6-02547ef6f3f6","slug":"insider-trading"},{"id":"ci023cf8a5800427dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:55:24Z","path":"/tag/crime","publicationTimestamp":"2019-01-14T17:54:08Z","title":"crime","commentsEnabled":true,"disqusId":"0a653282-1826-11e9-b993-025f192f501e","slug":"crime"},{"id":"ci023cf8a5300127dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:52:13Z","path":"/tag/law","publicationTimestamp":"2019-01-14T17:55:14Z","title":"law","commentsEnabled":true,"disqusId":"078b2089-1826-11e9-b993-025f192f501e","slug":"law"},{"id":"ci023cf8a9200527dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:48:28Z","path":"/tag/fraud","publicationTimestamp":"2019-01-14T17:52:11Z","title":"fraud","commentsEnabled":true,"disqusId":"2d982c1d-1826-11e9-b998-025f192f501e","slug":"fraud"},{"id":"ci029a3d8b900024ff","objectType":"ContentRichTerm","originalPublicationTimestamp":"2022-02-19T16:35:02Z","path":"/tag/caas-capital-management","publicationTimestamp":"2022-02-19T16:35:02Z","title":"CaaS Capital Management","commentsEnabled":true,"disqusId":"e3decc5f-91a1-11ec-b373-027643079cbf","promoTitle":"CaaS Capital Management","slug":"caas-capital-management"},{"id":"ci023cf8a7b00327dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:48:46Z","path":"/tag/morgan-stanley","publicationTimestamp":"2019-01-14T17:52:37Z","title":"Morgan Stanley","commentsEnabled":true,"disqusId":"1fbc5727-1826-11e9-b996-025f192f501e","slug":"morgan-stanley"},{"id":"ci023cf8a9a00825f5","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:55:01Z","path":"/tag/category-banks","publicationTimestamp":"2019-01-14T17:48:37Z","title":"Banks","commentsEnabled":true,"disqusId":"31970b83-1826-11e9-b999-025f192f501e","slug":"category-banks"},{"id":"ci023cf8a5d00027dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:48:30Z","path":"/category-hedge-funds","publicationTimestamp":"2019-01-14T17:50:10Z","title":"Hedge Funds","commentsEnabled":true,"disqusId":"0dcf287c-1826-11e9-b993-025f192f501e","slug":"category-hedge-funds"},{"id":"ci029ccaa15000272a","objectType":"ContentRichTerm","originalPublicationTimestamp":"2022-03-22T15:38:58Z","path":"/tag/frank-fu","publicationTimestamp":"2022-03-22T15:38:58Z","title":"Frank Fu","commentsEnabled":true,"disqusId":"31b421de-a9f6-11ec-bda0-02ed0d85f8a5","promoTitle":"Frank Fu","slug":"frank-fu"},{"id":"ci023cf8f3600827dc","objectType":"ContentRichTerm","originalPublicationTimestamp":"2019-01-14T17:54:28Z","path":"/tag/block-trades","publicationTimestamp":"2019-01-14T17:52:54Z","title":"block trades","commentsEnabled":true,"disqusId":"f12ad237-1828-11e9-b9f3-025f192f501e","slug":"block-trades"},{"id":"ci029ccaa310002795","objectType":"ContentRichTerm","originalPublicationTimestamp":"2022-03-22T15:39:26Z","path":"/tag/laurion-capital-management","publicationTimestamp":"2022-03-22T15:39:26Z","title":"Laurion Capital Management","commentsEnabled":true,"disqusId":"42c4422e-a9f6-11ec-8e32-02d517cf87b5","promoTitle":"Laurion Capital Management","slug":"laurion-capital-management"}]}

• Home
• Hedge Funds

When Being One Of—If Not The—First Call A Banker Makes Is Not Such A Great ThingIt’s when bragging about it becomes Exhibit A.

• Author:Jon Shazar
• Publish date:Mar 18, 2022

It’s when bragging about it becomes Exhibit A.

When Frank Fu set up his hedge fund a couple of years ago, he decided to go all in on block trades. This seemed like a good idea at the time: While his exit from Laurion Capital Management was acrimonious, his time there was quite augmentative for all sides—thanks to block trades. Indeed, it seemed a pretty good idea after his CaaS Capital Management’s first full year, in which the block-trades and access to initial public offerings they bought—and maybe even a bit of short-selling here and there after a suggestive phone call from a friendly banker—produced a 76% return.

As it turns out, however, it was probably not a very good idea, because unbeknownst to Fu, the year before he left Laurion the Securities and Exchange Commission and Justice Department began taking a little look at the world of block trades to see if, say, shorting the hell out of a name that the equity syndicate desk at, say, Morgan Stanley just floated as one that might just potentially be on the block might well just constitute insider trading, and that said powers that be would one day be diligently plowing through everything ever said to or by Fu in conversation with a block-trading banker. Then starting a block-trading-based hedge fund would seem rather a bad idea, and this sales pitch even worse.

“Due to the breadth and strength of these relationships, CaaS has earned a reputation in the market as the firm that receives an early, if not first, call,” the firm wrote in a recent marketing presentation.

The King of Block Trades Is Entangled in a U.S. Probe of Morgan Stanley [Bloomberg]

For more of the latest in litigation, regulation, deals and financial services trends, sign up for Finance Docket, a partnership between Breaking Media publications Above the Law and Dealbreaker.

Tagsterms:insider-tradingcrimelawfraudCaaS Capital ManagementMorgan StanleyBanksFrank Fublock tradesLaurion Capital ManagementBy Jon Shazar

BanksIt Has Stopped Being A Good Thing To Be Friends With Morgan Stanley’s Block Trading Head

Calls from Pawan Passi have been succeeded by calls from federal prosecutors and Gary Gensler.

Hedge FundsWhat Does Andrew Left Like Less: Getting Slaughtered By Redditors Or Having The FBI Show Up At His Door?

It’s a question he can answer now!

BanksThe Latest Standard Wall Street Practice That Is Apparently Rife With Fraud

Block trading is getting the old Garland-Gensler double-team.

BanksGoldman, Morgan Stanley Didn’t Just (Allegedly) Screw Credit Suisse Over On Archegos Sales

At least one company did not enjoy having its shares dumped, it says in lawsuit form.

BanksBanks Seem Willing To Accept No Money In Exchange For Pretending Archegos Doesn’t Exist, Never Happened

Allianz also accepts that discretion is the better part of valor.

Banks‘We Need All Lawyers In The Office’ Says Bank Definitely Not Freaking Out About Commercial Real Estate Portfolio

Morgan Stanley doth protest a lot about working from home.

Hedge FundsSeems ‘Insider Trader’ Was A Bit Too Harsh A Description For Two Hedge Fund Managers

You know, when prosecutors really look at it.

Hedge FundsNassau County Is A Hotbed Of Fraud And We Couldn’t Be Prouder

From meat mislabeling to a guy named Heckler cold-calling Ponzi scheme victims, it’s been a delightful month on Long Island.

• Privacy Policy
• Send Tips
• About
• Advertising
• Newsletter
• RSS

© 2022 Breaking Media Inc.