Hedge Funds

Fairfax launches short-selling legal action


In the latest lawsuit against hedge funds regarding their short selling, Canadian insurance company Fairfax Financial Holdings has brought a $5 billion action against several of the world's most prominent hedge fund players. Fairfax is alleging that the funds engaged in stock manipulation and the use of dirty tricks to drive down the company's stock price.

Defendants include Copper River Partners (formerly Rocker Partners), Lone Pine Capital, Third Point Management and SAC Capital Advisors, among others - all of whom Fairfax claims have profited from shorting the firm's stock.

The suit shares several similarities (including the same law