SEC reviews hedge fund trades in Fairfax

U.S. financial regulators are probing whether several prominent hedge funds might have made trades in Fairfax Financial Holdings Ltd. after having improperly received advance notice of an upcoming report, the Wall Street Journal reported in its Friday edition.

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The court documents allege that the hedge funds worked with a research analyst at Morgan Keegan, who was preparing a report about the company. The research report rated the company as "underperform" and its stock tumbled on the day it was released, according to court papers.