Kate Duguid, Joshua Franklin, Ortenca Aliaj and James Fontanella-Khan of The Financial Times examine how Hunterbrook, the hedge-fund like operation using journalists to provide research, would operate.
Duguid, Franklin, Aliaj and Fontanella-Khan report, “Reporters at the company will not seek out material non-public information though, like a hedge fund, may encounter it while reporting.
“Any articles written by Hunterbrook reporters will be reviewed by compliance officers for material non-public information and then a decision will be made on whether they are tradable stories for the hedge fund. In instances where articles contain material non-public information, the company plans to publish the stories without trading on the news before publication.
“Using journalism to drive financial investments is not a new idea. Mark Cuban, the billionaire owner of the Dallas Mavericks basketball team and panellist on CNBC’s Shark Tank, in 2006 launched Sharesleuth. The venture was smaller, with a handful of journalists on staff to report on suspected fraud or deception at companies, and still publishes occasionally.”
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