A ‘black edge’ is a jargon term for inside information. Using inside information to trade is illegal and it looks Cohen’s entire organisation is going to face allegations of insider trading.
Says Reuters:
The Department of Justice’s rare move to indict an entire organization instead of a few individuals could sound the death knell for one of Wall Street’s most successful hedge funds … But other fund managers and a Wall Street historian said it could have far-reaching effects beyond SAC, and may change how hedge funds do business forever — especially funds that rely on getting information to buy and sell stocks.
Note:
- SAC Capital has not been convicted of a crime and denies any wrongdoing
- Cohen may yet be able to stay in business because more than $8 billion of the fund’s roughly $15 billion of assets belong to him and his employees
Interesting article: SAC gets cut by ‘edge’, a word Cohen hated
