14 %
of respondents believe that insider trading practices in the alternative
investment industry have become less prevalent since the FBI arrested Raj Rajaratnam and
scared the bejeezus
out of everyone, a noticeable drop from January 2016 when 25 %
of respondents felt this way; 37 %
of respondents think the news
of arrests and convictions there has had little impact on insider trading because those who engage in such practices think they are smarter than everyone else and will never get caught, compared with 39 %
of respondents in 2016; and 49 %
of respondents believe the influx
of money into funds in recent years and the explosion in the number
of hedge fund firms has put enough pressure on fund managers that there will always be a few desperate enough to try anything, including insider trading, a significant increase from the 36 %
of respondents who felt this way in the Roundtable's previous survey on this topic.
For example, it's easy to be
scared out of the market and sell all your
investments when you have no idea where you were there in the first place.