FSA Fines David Einhorn and Greenlight Capital Inc. £7.2m for Trading on Inside Information
January 25, 2012
David Einhorn, owner of US hedge fund Greenlight Capital Inc., has been fined along with his fund for engaging in market abuse following the fund's sale of its equity in Punch Taverns Plc.
In June 2009, Einhorn participated in a telephone conference where he was alerted that Punch was at an advanced stage of the process towards a significant equity fundraising. Einhorn immediately ordered Greenlight to reduce its holding in punch by 4.5%. When the fundraising was subsequently announced, the price of Punch shares fell by 30%, a move that would have otherwise triggered losses of c. pound;5.8 million for the funds under Greenlight's management.