Dan Niles
2nd Submission: During my 1st submission, the primary complaint I received was that the sources are primarily interviews, profiles, and articles regarding the person of interest (POI) Dan Niles that include statements he has made publicly on air.
Because Hedge Funds are a rather arcane area of finance, I would like to explain my rationale behind my sources and why my sources are primarily from these sources of information. Hedge Funds, and the individuals who run them, unlike most other fields and professionals, are highly regulated by the SEC and as a consequence, any public announcement made by Hedge Funds must be compliant with SEC regulations otherwise the fund can face disciplinary action such as forced closure, large fines, or even prison time. Some examples of these regulations are the following:
- Form D – the SEC wants firms to submit a Form D. This must be filed 15 days before an advertisement is sent out. This would provide information into what the firm intends to offer and how. This is done so that the SEC may better regulate the market and prevent fraud.
- Ad Materials – the SEC wants a copy of ads to be filed with them before or just after they are sent out so that they may ensure that the information being disseminated by the Hedge fund is accurate.
- It is the job of the company to ensure that these requirements are met. Non-compliance with these guidelines could result in disciplinary action on the part of the SEC.
If you would like more information please see the Dodd–Frank Wall Street Reform and Consumer Protection Act and others like it (Title IV contains information regarding SEC oversight). Also see Regulation D from the SEC. I find that the following link is a useful resource as well: https://fas.org/sgp/crs/misc/R41350.pdf.
Therefore, if I am to cite information regarding the positions taken by the Hedge Fund and calls that the Fund, or in this case its manager, has made, the ideal sources would be official advertisements made by the Fund (ie. If they did an ad campaign via Form D), stock ownership claims made in public forums by the Fund (ie. Long and Short Positions made public via interviews in the news), and other information from members of the Fund (the manager, the COO etc.) whether that be disclosures they have made regarding the fund via their social media or website. Because what these funds can/cannot communicate is highly regulated and monitored and can even face extreme disciplinary action if it is fraudulent or purposefully misleading, I chose to use as many news sources involving the actual manager of the fund because these claims would have necessitated compliance with the SEC regulations and therefore are required to be accurate. If the fund manager claims his fund is long/short Apple, or Facebook, or the S&P 500, then the fund must be long/short those positions. In summary, unlike other TV personalities, companies, and public figures, hedge funds are held highly accountable for any information they put out regarding their positions, opinions, management etc. and as a result it is often times better to get information directly from the source than via secondary sources.
In essence, I cite articles, interviews, and other sources involving the POI because of the heavy regulatory oversight by the SEC on public communications made by him and his firm, whereas citing Reuters or BBC would introduce a layer of separation from the raw source (Reuters gets their information from CNBC who gets it from the POI for example) and therefore could potentially introduce bias. I did not include this information in my original submission because I figured that these rules and regulations are separate from the subject manner of this article and therefore should not be included in any heading in this article. That being said, I have removed other segments per Timetrent's recommendation that contained non-neutral language pulled from other articles. As for the link to the POI's fund's site, I tried to copy the style of https://en.wikipedia.org/wiki/Bill_Ackman for the card as well as https://en.wikipedia.org/wiki/Kenneth_C._Griffin.
Edit: I received a response on an email I sent via danniles.com. This is what they said: As an SEC registered Investment Advisor, STP Investment Partners, the advisor to the AlphaOne Satori Fund managed by Dan Niles is required to produce and report accurate financial performance numbers or face fiscal penalties and suspension or removal from being allowed to manage client money. As a result, performance numbers are mandated to perform independent reviews and audit of performance returns by third party accounting firms. All performance advertising should be supported by disclaimers as to how the reported numbers are calculated and over what time periods.
So it seems that the Dodd-Frank Act covers them as well.
| Dan Niles | |
|---|---|
| Born | Daniel T. Niles June 29, 1967 Sri Lanka |
| 🏳️ Citizenship | United States |
| 🏫 Education | Stanford University (MS)[1] Boston University (B.S.)[1] |
| 💼 Occupation | |
Dan Niles (born June 29, 1967) is an American hedge fund manager, former equity researcher, and former electrical engineer.[3]
Early life and education
Before the beginning of his Wall Street career, Niles was an engineer at Digital Equipment Corporation.[3] An engineer by training, Niles received a BS in Systems Engineering from Boston University and a MS in Electrical Engineering from Stanford University.[3]
Wall Street career
Beginning his Wall Street career in 1990, Niles worked as an investment banker at Robertson Stephens from 1990 to 1994.[3] He then switched to becoming a sell-side semiconductor and computer hardware research analyst at Robertson Stephens from 1994 to 2000.[3] Niles eventually left Robertson Stephens and joined Lehman Brothers in May of 2000.[2] He served as the senior sell-side equity research analyst covering computer hardware and semiconductors.[2] He then launched the Satori Fund in March of 2004. From 2004 until 2009, Niles served as Managing Director at Neuberger Berman, Inc., and the Chief Executive Officer of Neuberger Berman Technology Management, LLC, the former general partner of the Satori Fund.[2] After Lehman Brothers collapsed, Dan Niles would go on to become a founding partner at AlphaOne Capital Partners.[2]
References
I removed practically all of the actual content about his career etc. as it could be considered biased. I also removed the award he received as that could be considered biased. I would really appreciate any help on this article as I don't know what is considered a good source. There are a lot of reuters articles, but none of them really tell me anything about the person, just quick opinions.
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