Suppose you work at a buyside shop and you have finished researching a company. It is trading at a discount to intrinsic value, but not enough given that it is risky, and this firm is extremely risk averse. Can you buy it for your own portfolio due to personal risk requirements being different than the firms? Eventually the firm may buy it if it trades at a higher discount.
No - you’re front running. Don’t purchase it. I would say to be safe at least until the company as an investment is no longer being considered. But to be really safe - dont’ buy it as long as you work there. Keep in mind, your reputation in this industry is worth more than the gains on a single trade.
is a general rule not to buy anything for your own account that you are researching for the company?
I would agree with Striker, it creates the appearance of conflict of interest.
I’d do it. It’s a damn shame you did all that research (i.e. discovered an opportunity) yet it is going untouched. The great One gives us only so many opportunities. If we let them go because we are worried about “what other people think” then for shame for shame for shame.
As long as you get approval from your boss, and make necessary disclosure. I don’t see a bit of problem.
ws raises a good point i overlooked. if you get approval from compliance, go for it. otherwise don’t. and ignore virginCFAhooker. you do want to worry what other people think. some of those people might work at securities regulators…