Investment advisory firm HITE Hedge Asset Management and its private fund clients agreed to pay more than $220,000 to settle allegations the firm violated a Securities and Exchange Commission (SEC) rule concerning short selling.
In May 2021, traders at Massachusetts-based HITE Hedge Asset Management sold Pioneer Natural Resources stock within five business days of a public offering for the stock—known as a restricted period—then repurchased the stock during the offering, the SEC alleged. Short selling during a restricted period is a violation of SEC Rule 105, which is designed to prevent market manipulation.
