Hedge Funds

Hochfeld Capital manager charged with fraud


The U.S. Securities and Exchange Commission filed fraud charges against the manager of New York-based hedge fund Hochfeld Capital Management.

The civil complaint against Bertron Hochfeld, filed on November 29 in federal court in Manhattan, accused the hedge fund manager of a practice called "scalping" while he was an analyst for First Montauk Securities and simultaneously ran a hedge fund called the Hepplewhite Fund.

Scalping refers to the trading of securities by an individual that goes against the advice that same individual gives to investors. The SEC complaint alleges that Hochfeld traded shares in his fund's portfolio immediately after