Omar Zaki, 21, said his firm relied on an algorithm that produced eye-popping returns. In reality, the fund never used the algorithm, misled investors and wrongly reported returns in excess of 80% from Dec. 2016 through early March 2017, the SEC said.
This is one college side hustle a recent Yale grad might be regretting.
Omar Zaki, 21, ran a hedge fund while enrolled at the Ivy League university, saying his firm relied on an algorithm that had produced eye-popping returns over a 10-year period, according to the Securities and Exchange Commission.The misrepresentation is one of many that Zaki allegedly made to investors, the SEC said in a Monday complaint.
Zaki, who told investors he managed $3 million, raised $1.7 million from 11 clients from January 2017 to February 2018 by marketing a biotechnology trading strategy. He settled the SEC’s allegations without admitting or denying its findings, agreeing to pay a $25,000 fine. Perhaps because of Zaki’s financial status as a recent college grad, the SEC is letting him pay in installments of $2,083.33 over three years. In the settlement, the regulator said Zaki is currently unemployed.If Zaki is going to follow in the footsteps of Ken Griffin, who famously started trading convertible bonds from his Harvard dorm room, he will have to be patient.
An alumni database shows he graduated from Yale last year, earning a bachelor’s degree in economics and physics.
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