Segantii Capital Management founder Simon Sadler returned to a Hong Kong court this week as prosecutors delivered closing arguments in a high-profile insider trading case involving Esprit Holdings Ltd. trades dating back to June 2017. Prosecutors argue Sadler and former trader Daniel La Rocca sold shares the day before Lone Pine Capital disposed of its 10% stake because they possessed inside information from Bank of America trader Tony Psarianos, whose calls and emails were presented as key evidence. While defense lawyers prepare their rebuttal, Sadler previously claimed he acted after reading research from former analyst Vikki Huang, stating the position had become 'lazy, stale.' The trial, delayed since June 2024, centers on the $1 million short position built by Segantii following Psarianos' tip about a shareholder considering selling 190 million shares.
Prosecutors assert no other explanation fits the timing of the trades, which occurred ahead of Lone Pine's block trade equivalent to 60 times daily volume. Sadler, who built Segantii from $26 million in 2007 to over $6 billion in assets, faces charges alongside La Rocca and the firm itself, with separate defense teams still to respond. The Hong Kong securities watchdog initiated criminal proceedings in May 2024, leading to investor redemptions and the firm's eventual return of capital after employing about 140 people globally.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing