David A. Rocker (born 1943) founded the hedge fund Rocker Partners, LP. Rocker holds a magna cum laude bachelors from Harvard College and a master of business administration from Harvard Business School. Rocker and his wife, Marian, reside in Florida and New Jersey. They have two sons.
In 1969, Rocker joined Mitchell Hutchins, where he was a research analyst and investment banker. In 1972, he hired on at Steinhardt, Fine, Berkowitz & Co., a pioneering hedge fund, and was a general partner there from 1973 to 1981. Rocker joined Century Capital, a registered investment adviser, as a partner in 1981. While there, he was a portfolio manager for institutional clients. Continue reading “Subject: David Rocker”
Naked Short Selling
Naked short selling, or naked shorting, is the practice of short-selling a tradable asset of any kind without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale. When the seller does not obtain the shares within the required time frame, the result is known as a “failure to deliver” (“FTD”). The transaction generally remains open until the shares are acquired by the seller, or the seller’s broker settles the trade.
Continue reading “Web: Wikipedia – Naked Short Selling”
The Creation of Counterfeit Shares — There are a variety of names that the securities industry has dreamed up that are euphemisms for counterfeit shares. Don’t be fooled : Unless the short seller has actually borrowed a real share from the account of a long investor, the short sale is counterfeit. It doesn’t matter what you call it and it may become non–counterfeit if a share is later borrowed, but until then, there are more shares in the system than the company has sold.
The magnitude of the counterfeiting is hundreds of millions of shares every day, and it may be in the billions. The real answer is locked within the prime brokers and the DTC. Incidentally, counterfeiting of securities is as
It is estimated that 1000 small companies have been put out of business by the shorts.
PDF (12 Pages): Paper Counterfeiting Stock
The Hedge Fund Industry: an increasingly litigious environment
cms lawnow, 12 December 2006
In July 2006, Fairfax Financial Holdings Limited (the insurance and financial services holding company based in Toronto Canada) brought a legal action in the Superior Court of New Jersey against a number of prominent US based hedge funds including S.A.C. Capital Management (the $10billion hedge fund operated by Stephen Cohen), Exis Capital Management, Lone Pine Capital, Rocker Partners L.P. and Third Point LLC alleging stock market manipulation. Continue reading “Article: The Hedge Fund Industry: an increasingly litigious environment”
December 8, 2009 at 5:34 PM EST
Rocker Pays $5 Million to Overstock.com to Settle Lawsuit
‘A fine victory for Overstock, a triumph for the cause of cleaning up US capital markets’ says CEO Patrick Byrne.
Full text below the fold.
Continue reading “Press Release: Rocker Pays $5 Million to Overstock.com to Settle Lawsuit”
In Pursuit of the Naked Short
Alexis Stokes, Texas State University
Journal of Law and Business 5/1 (Spring 2009)
This article explores the origins of naked short-selling litigation; considers
the failures of significant naked short-selling lawsuits in federal court;
surveys the obstacles erected collectively by constitutional standing requirements, the Federal Rules of Civil Procedure, the Private Securities Litigation Reform Act, brokerage firms, death spiral financiers, and the Depository Trust and Clearing Corporation; examines the efficacy of Regulation SHO, SEC rule 10b-21, and new FINRA rules; discusses recent state legislation and state court litigation; and identifies non-litigation options to curb naked short-selling. Ultimately, this article seeks to answer the question: If manipulative naked short-selling is more than a mythological scapegoat for
small cap failure, what remedies are, or should be, available?
PDF (62 Pages): Article In Pursuit of the Naked Short
The Story of Deep Capture
By Mark Mitchell, with reporting by the Deep Capture Team
The Columbia School of Journalism is our nation’s finest. They grant the Pulitzer Prize, and their journal, The Columbia Journalism Review, is the profession’s gold standard. CJR reporters are high priests of a decaying temple, tending a flame in a land going dark. In 2006 a CJR editor (a seasoned journalist formerly with Time magazine in Asia, The Wall Street Journal Europe, and The Far Eastern Economic Review) called me to discuss suspicions he was forming about the US financial media. I gave him leads but warned, “Chasing this will take you down a rabbit hole with no bottom.” For months he pursued his story against pressure and threats he once described as, “something out of a Hollywood B movie, but unlike the movies, the evil corporations fighting the journalist are not thugs burying toxic waste, they are Wall Street and the financial media itself.” His exposé reveals a circle of corruption enclosing venerable Wall Street banks, shady offshore financiers, and suspiciously compliant reporters at The Wall Street Journal, Fortune, CNBC, and The New York Times. If you ever wonder how reporters react when a journalist investigates them (answer: like white-collar crooks they dodge interviews, lie, and hide behind lawyers), or if financial corruption interests you, then this is for you. It makes Grisham read like a book of bedtime stories, and exposes a scandal that may make Enron look like an afternoon tea.
Introduction By Patrick M. Byrne, Deep Capture Reporter
PDF (69 Pages): Deep Capture Story
Overstock’s Three Affidavits
John Reeves, 05 October 2005
The nearly endless fount of mirth surrounding Patrick Byrne’s lawsuit against Gradient Analytics, short-selling hedge fund Rocker Partners, and others is obscuring a case with fairly broad implications for security analysis, First Amendment rights, and the credibility of our public markets.
While fanciful visions of Sith Lords and evil shorting hordes make for good copy, this is a lawsuit that is about something more substantive: an accusation that Gradient and Rocker resorted to unfair business practices to knock down Overstock.com’s (NASDAQ:OSTK) share price. Too much coverage has been spent plumbing the entertainment value, and nearly none on the facts of the suit itself. Continue reading “Article: Overstock’s Three Affidavits”
Overstock Faces SEC Probe, Details Short-Selling Lawsuit
Carol S. Remond | Dow Jones Newswires, 12 August 2005
Overstock.com President Patrick Byrne said in a conference call Friday that the Securities and Exchange Commission began an informal inquiry into the company in February. Continue reading “Article: Overstock Faces SEC Probe, Details Short-Selling Lawsuit”