Basically, the way hedge funds work is, you try to have some "proprietary" information or analysis that is not already incorporated into market prices -- that gives you "edge" -- and then you use your proprietary edge to trade and make money.
The first time I wrote about Sean Egan and his small, independent credit-research firm, Egan-Jones Ratings Co., was in December 2007 for a column about the bond insurer MBIA Inc. And man, did he nail it.
Egan-Jones Ratings Co. and its founder Sean Egan sued the U.S. Securities and Exchange Commission to force the agency to bring its allegations of misrepresentation against the firm before a federal judge.
Egan-Jones Ratings Co. and the firm’s owner and president, Sean Egan, were sued by the U.S. Securities and Exchange Commission, which claimed material misrepresentations and omissions in the company’s July 2008 application to register as a ratings organization.
The U.S. Securities and Exchange Commission accused Egan-Jones Ratings Co. and founder Sean Egan of making misrepresentations about the firm’s experience rating asset-backed and government securities in a 2008 application to become a nationally recognized statistical ratings organization.