- Sabby Management LLC is arguably one of the most prolific so-called “vulture funds” currently operating in the realm of small/micro/nano caps.
- Several of the companies Sabby Management has been involved with raise several red flags. Examples include: INXP, CODX and GNPX.
- Since 2018 Sabby Management has been involved with 75 different companies. The vast majority have since experienced significant decreases in their share prices, in some cases greater than 99%. The average annualised rate of return for 73 of these 75 companies is a horrific 35.45%.
Another week, another investor warning focusing on a so-called “dubious” third party currently plying its trade in the realm of small/micro/nano caps. This time we turn our attention to Sabby Management LLC, the most prolific entity we have covered thus far as it has been involved with over seventy different companies during 2018 and 2019. We must emphasise that this article is no way accusing Sabby Management of breaking any laws, regulations, duties or contractual obligations (excluding matters that have been settled with the SEC), we are simply highlighting how this fund finds itself repeatedly involved with publicly traded companies that exhibit highly unusual yet somewhat predictable share price behaviour.
Sabby Management is surprisingly secretive as it does not have a website, meaning that all the information presented in this article has been taken from other sources. The man at the helm of Sabby is Hal David Mintz. We believe he is based in New Jersey and owns a residence in South Florida (1). A quick Google search will reveal that Sabby Management’s track record is not squeaky clean as it was named as a defendant in an SEC administrative proceeding resulting in a cease and desist order. This came as a result of Sabby Management violating Rule 105 of Regulation M of the Exchange Act, a rule that “prohibits buying an equity security made available through a public offering, conducted on a firm commitment basis, from an underwriter or broker or dealer participating in the offering after having sold short the same security during the restricted period as defined therein”. The SEC stated that “On two occasions between December 2014 and February 2015, Sabby bought offering shares from an underwriter or broker or dealer participating in a follow-on public offering after having sold short the same security during the Rule 105 restricted period. The violations resulted inprofits of $184,747.10” (2). Sabby Management settled the matter by agreeing to pay disgorgement of $184,747.10, prejudgment interest of $2,331.51, and a penalty of $91,669.95 (3). Our previous investor warning highlighted how Hudson Bay Capital settled with the SEC for violating this very same rule.
In order to illustrate Sabby Mangement’s investments we will first take a closer look at three of the companies it has been involved with over the last couple of years that have also recently exhibited unusual price behaviour. Later on, we will give an overview of the rates of return generated by 75 different companies since Sabby Management purchased a stake in them. Please note that we will be comparing historical share prices to those of March 4, 2020, as this date precedes the “Great Corona Crash”.
To view the full contents of this report and/or our other Investor Warnings focusing on so-called "dubious" third parties, please select one of the options below. These reports include:To have an idea of what to expect please have a look at our free Investor Warning on Lincoln Park Capital.
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