Overview

Rabbit Alpha LLC is an incubator hedge fund managed by Rabbit Capital Management LLC. The fund uses equities, derivatives, and debt financial instruments to establish positions focusing on Regulatory, Event Driven, and Risk Arbitrage. In 2012 the SEC fined HSBC bank a record 1.9 billion dollars for terrorist and drug cartel financing. The record fine was only five weeks of HSBC’s profits (a slap on the wrist), and nobody went to jail. Corporate America learned from HSBC that fines were simply a cost of doing business and it was cheaper to pay instead of restructuring to comply with the law. The U.S. Government has cultivated an environment where publicly traded companies are willing to break the law, pay a slap on the wrist fine, only for the shareholders to pay the price with their stock losing significant value. Rabbit Capital Management and Rabbit Alpha are taking full advantage of the compliance and regulatory environment.