SEC-PR-2412-198 (Dec. 12, 2024) (SEC-PR-2412) SEC Charges Former Representative of Advisory Firm SeaCrest with Cherry-Picking – Firm settles SEC charges related to former employee’s misconduct Excerpt: Washington D.C., Dec. 12, 2024 — The Securities and Exchange Commission today charged Eric Cobb of South Carolina with engaging in a fraudulent scheme where he allocated profitable securities […]
Category: Cherry-Picking Allocations
Cherry-Picking Allocations refers to a practice where portfolio managers selectively allocate investments to specific funds or strategies based on their recent performance, often favoring those with strong recent returns. While this approach may seem appealing, it carries significant risks and can lead to suboptimal portfolio performance over the long term.
The practice of Cherry-Picking Allocations has not gone unnoticed by regulatory authorities. Increased scrutiny has emerged due to concerns about the potential for misleading practices and the impact on investor outcomes.
SEC-PR-2024-187 (11-25-24) (SEC-PR-2411) SEC Charges Ken Leech, Former Co-Chief Investment Officer of Western Asset Management Co., with Fraud – Defendant allegedly engaged in cherry-picking, allocating hundreds of millions of dollars in net first-day gains and losses to favored and disfavored portfolios, respectively Excerpt: Washington D.C., Nov. 25, 2024 — The Securities and Exchange Commission today […]