Help! My CEO is Running a Secret Hedge Fund!
- Joshua M Brown
- May 2nd, 2012
This Chesapeake Energy/Aubrey McLendon shit is just Beyond the Pale.
Conflicts (or the potential for conflicts) are everywhere when you have the CEO of a nat gas company - with shareholders - running a hedge fund that trades the same commodities as the corporation itself. And then all the loans and bonuses and arms-length transactions etc, it's reminiscent of Worldcom.
Yeah, I said it.
Today's must-read is this Reuters story that's ricoheting around the financial web (and I bet the Fortune 500) this morning...
(Reuters) - As chairman and CEO of Chesapeake Energy Corp, Aubrey McClendon has been a powerhouse in the vast U.S. natural gas market, directing the company's multibillion dollar energy-trading operation and setting output targets for America's second-largest producer.
Behind the scenes, a Reuters investigation has found, McClendon also ran a lucrative business on the side: a $200 million hedge fund that traded in the same commodities Chesapeake produces.
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The Reformed Broker is a blog about financial markets and the economy. Joshua Brown is a New York City-based investment advisor for high net worth individuals, charitable foundations, retirement plans and corporations... More.