Josh Brown: “Authorities Break Up Active Management Cell”

Josh Brown has the scoop:

(Boston, MA) – Local police, working closely with Federal pension fund authorities, arrested three men on Thursday morning while breaking up an active management cell that was on the verge of deviating from the index. Based on early reports from S&P Dow Jones Indices, it could have been the costliest attack on American soil in months.

The men – all Wharton Business School nationals working in Boston’s downtown financial district — allegedly belong to a group with ties to the active management community, according to Morningstar Intelligence.

“At the moment the cell was broken up, its members were fully radicalized and in a phase of total assimilation and commitment to the value investor ideology – demonstrating their full disposition to carry out non-correlated strategies with high tracking error” the Department of Portfolio Conformity said in a statement.

The joint task force acted because the cell’s members were allocating unpredictably and “had shown full willingness to carry out security selection and research,” according to the agency.

The three men, who are between the ages of 26 and 29, were being interrogated in custody, a Department representative said. Authorities can hold them for up to five days before pressing for full redemption.

Read the whole thing.

Posted by on November 3rd, 2016 at 2:13 pm


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